Highlights

  • FY26 group EBITS was $492.3 million, while net sales Revenue was $2,561.0 million.
  • Penfolds depletions increased in China, Asia excluding China and Australia during FY26.
  • Customer inventory Rebalancing remained an important focus in China during the year.
  • The TWE Ascent transformation program targets annual cost reductions of $100 million by FY29.
  • Treasury Wine Estates is shifting to a regional operating model from 1 October 2026.

Treasury Wine Estates Limited (ASX:TWE) is a global wine company with brands sold in more than 100 countries and a portfolio that includes Penfolds, DAOU Vineyards, Matua, Frank Family Vineyards, Pepperjack and Wynns. Its FY26 results place particular attention on Penfolds Demand in Asia, customer inventory management, the performance of the Americas Business and the group-wide TWE Ascent transformation program.

FY26 Earnings Reflect Portfolio and Channel Adjustments

For the year ended 30 June 2026, Treasury Wine Estates reported net sales revenue of $2,561.0 million and EBITS of $492.3 million. EBITS was above the company's stated $480 million to $490 million guidance range, although it was lower than the prior corresponding period. The group also reported a statutory net loss after tax of $1,078.7 million, reflecting material items that included non-cash impairments of US-based assets.

Penfolds remained the largest divisional earnings contributor, with FY26 EBITS of $404.3 million and an EBITS Margin of 40.5%. Penfolds net sales revenue was $998.3 million. The company said the division's result was affected by efforts to reduce customer inventory in China and restrict shipments associated with parallel Import activity.

Penfolds Depletions Increase Across Key Asian Markets

Consumer depletions for Penfolds increased during FY26, including growth of 34.7% in China, 18.1% in Asia excluding China and 5.7% in Australia. In China, the company said depletion growth reflected consumer demand, improved fourth-quarter performance and measures designed to redirect parallel imports toward authorised distribution channels.

China customer inventory cover was reduced by approximately 0.2 million cases during FY26, representing about half of the targeted 0.4 million case reduction. The company expects the rebalancing process to continue into FY27. Penfolds Bin 389 and Bin 407 also continued to record depletion growth during the year.

TWE Ascent Reshapes the Operating Model

Treasury Wine Estates continued implementing its TWE Ascent transformation program during 2026. The program targets annual cost reductions of $100 million by FY29, with approximately $40 million of benefit expected in FY27. The company is also moving to a regional operating structure from 1 October 2026, replacing the previous divisional model for future reporting and operational management.

The Americas business remains under strategic and operational review. Treasury Wine Estates said it would reduce US vintage production from 2026 as part of broader measures aimed at rebalancing the Supply chain and improving the region's medium-term economics. The review covers the Brand portfolio, operating model and asset base.

Key Insights

Treasury Wine Estates' FY26 performance shows a business balancing brand demand with tighter inventory and channel management. Penfolds continued to generate the majority of divisional EBITS, while China remained central to depletion growth and inventory rebalancing. At the same time, the TWE Ascent program and the regional operating model represent material organisational changes that will shape how the group manages costs, markets and brand portfolios from late 2026.