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Highlights

  • In FY24, TWE’s revenue increased 12.9% YoY to AUD 2,808.3 million, with 12.8% YoY EBITS growth to AUD 658.1 million
  • Penfolds launched its first China-sourced luxury wine and a new Champagne Cuvée Brut in collaboration with Champagne Thienot
  • The company plans to acquire a 75% stake in Ningxia Stone & Moon Winery Co. Ltd for AUD 27.5 million

Treasury Wine Estates Limited (ASX:TWE) is engaged in grape growing and sourcing, wine production, and wine marketing, sales, and distribution. The company has three divisions - Treasury Premium Brands, Treasury Americas and Penfolds.

In the financial year 2024 (FY24), Penfolds achieved a significant milestone with the launch of its first China-sourced luxury wine and a new Champagne Cuvée Brut in collaboration with Champagne Thienot.

During the reported period, the company recorded 12.9% YoY increase in revenue from ordinary activities to AUD 2,808.3 million, 13.1% YoY rise in net sales revenue (NSR) and 12.8% YoY jump in EBITS to AUD 658.1 million. EBITS and NSR growth in FY24 was driven by the performance of the luxury portfolio in Treasury Americas and Penfolds, which was partially offset by lower premium and commercial portfolio shipments in Treasury Premium Brands. 

Recent business update

Through an ASX update dated 10 December, the company shared its plans to acquire a 75% stake in Ningxia Stone & Moon Winery Co. Ltd for a total consideration of approximately AUD 27.5 million. The acquisition is anticipated to be concluded in the second half of FY25, pending the fulfillment of customary closing conditions. As part of the agreement, TWE will have the option to purchase the remaining 25% ownership after five years.

Outlook

The company has reaffirmed its FY25 EBITS guidance range of AUD 780-810 million with continuous top-line growth underpinned by the momentum across the luxury brand portfolio. In FY25, the company expects to deliver low double-digit EBITS growth for Penfolds, increasing to nearly 15% annually in FY26 and FY27. Furthermore, the company has plans to divest its commercial brand portfolio.

Top 10 shareholders of TWE

The top 10 shareholders of TWE have around 28.62% shareholding in the company, with the highest stake held by Capital Research Global Investors with a shareholding of approximately 4.84%, followed by State Street Global Advisors Australia Ltd. with a shareholding of ~4.80%.

Share performance of TWE

TWE shares closed 1.11% lower at AUD 11.61 apiece on 16 December 2024. In the past one year, TWE’s share price has increased by 9.43%, and in three months, the share price has gained 4.22%.

52-week high of TWE is AUD 13.01, recorded on 4 April 2024, and the 52-week low is AUD 9.98, recorded on 10 January 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 December 2024. The reference data in this report has been partly sourced from EODHD/Others.