Treasury Wine Estates fiscal 2025 updates

Treasury Wine Estates (ASX:TWE) held its Annual General Meeting on October 17, 2024. The company showcased strong growth in its first quarter of fiscal 2025. Driven by luxury wines, especially the Penfolds brand, TWE anticipates a successful fiscal year.

Summary of Treasury Wine Estates growth and outlook

Treasury Wine Estates (ASX:TWE) has demonstrated robust growth, driven by its luxury wine segment, notably Penfolds. The company achieved double-digit growth in net sales revenue, particularly excelling in Asia and Australia. With the completion of the DAOU Vineyards acquisition enhancing its luxury portfolio, TWE expects continued momentum. For fiscal 2025, TWE forecasts low double-digit growth in earnings before interest and taxes for Penfolds, with an overall target range of $780-810 million in EBITS. Sustainability remains a priority, with significant reductions in greenhouse gas emissions and a move towards renewable energy. The company is also divesting some commercial brands to sharpen its focus on premium and luxury wines. Despite market risks and uncertainties, Treasury Wine Estates remains committed to its strategic goals and sustainable growth.

Executive commentary on Treasury Wine Estates performance

TWE has seen strong double-digit organic growth in Group NSR. The Penfolds brand is thriving in Asia and Australia, and we expect low double-digit EBITS growth for Penfolds. Treasury Americas Luxury portfolio will gain momentum from the second quarter. We aim for EBITS between $780-810 million, leveraging our luxury brand strengths.