Overview of Treasury Wine Estates Ltd's financial statements

Treasury Wine Estates Ltd (ASX: $TWE) has released its interim financial statements for the half year ended 31 December 2023. The Board has determined to pay an interim dividend of 17 cents per share in respect of the half year ended 31 December 2023. The record date for determining an entitlement to receipt of the interim dividend is 7 March 2024 (AEDT) and the dividend is expected to be paid on 3 April 2024. Net profit after tax attributable to members of Treasury Wine Estates Limited for the half year ended 31 December 2023 was $166.7 million (2022: $188.2 million) and reported earnings per share was 22.5 cents per share (2022: 25.8 cents per share).

Executive commentary on financial performance and acquisitions

The financial information in the Operating and Financial Review is based on the reviewed financial statements. Non-IFRS measures have not been subject to audit or review. The non-IFRS measures are used internally by management to assess the performance of the business and make decisions on the allocation of resources. Net Sales Revenue (NSR) for the period was $1,284.3 million (2022: $1,284.5 million), with Luxury portfolio growth driven by continued positive momentum for Penfolds and modestly increased availability in Treasury Americas, offset by reduced Premium shipment volumes in Treasury Americas and reduced Premium and Commercial shipments in Treasury Premium Brands. Earnings before interest, tax, SGARA and material items ("EBITS") of $289.8 million (2022: $307.5 million) has decreased by 5.8%. At 31 December 2023, a post-tax net material items loss of $29.0 million has been recognised and primarily related to one-off costs associated with the acquisition of DAOU Vineyards ("DAOU").

Summary of financial statements and future outlook

Treasury Wine Estates Ltd has corrected a transposition error with respect to the segment breakdown of the comparative asset and liability information. The company has declared an interim dividend of 17 cents per share and reported a net profit after tax of $166.7 million for the half year ended 31 December 2023. The acquisition of DAOU Vineyards has contributed to the financial performance, and the Group has entered into a contract to purchase vineyard assets in New Zealand for approximately $50 million. The Group's financial statements reflect a positive outlook for the future, driven by continued positive momentum for its luxury portfolio and strategic acquisitions.