Date£º
2018-08-29 15:21 Source£º
www.thedrinksbusiness.com Author:
Natalie Wang Translator:
Australian wine giant Treasury Wine Estates (TWE), the parent company of Penfolds and Wolf Blass, has reported a 34% rise in net profits to AU$360.4 million during the 2018 financial year, mainly driven by sales in Asia.
Treasury Wine Estates chief executive Michael Clarke (Photo: Treasury)
The surging demand coming from Asia helped push its EBITS to AU$530.2 million, up by 17%, according to the company¡¯s latest financial results.
Asia alone reported 37% growth in EBITS to AU$205.2 million, driven by ¡°continued demand for TWE¡¯s broadened brand portfolio and optimisation of TWE¡¯s routes-to- market in priority channels¡±, said the company.
All country-of-origin brand portfolios delivered volume growth (Australian up 27%, the US up 44% and French up 296%).
Previous concerns over the delay of Australian wine imports into China, reported by TWE, seem to have been ¡°abated,¡± the company announced. The region is expected to deliver EBITS margin of 35%+ in the next financial year.
Meanwhile TWE¡¯s performance in the US seems to have stabilised, as the Australian wine giant starts to take its distribution into its own hands, and pushing for premium wine segment in the market.
The Americas, including the US, Canada and South America, reported a 2% decline in EBITS to AU$193 million during the 2018 financial year and an EBITS margin of 20.1%, up 2%, thanks to ongoing premiumisation and strong growth in Canada, Direct-to-Customer (DTC) sales and Latin America, it added.
TWE¡¯s CEO, Michael Clarke, said: ¡°I am delighted to report another stellar financial result for F18; a year we have coined a ¡®foundation year¡¯ for our Company. The momentum in our business, together with the strength of our organisational talent, brand portfolios, operating models and customer partnerships, enabled us to execute transformational changes to our operating model in the US and still deliver strong profit growth.¡±
¡°Over the past four years, we have delivered an EBITS CAGR of 25% whilst embedding meaningful changes that will drive continued long term, sustainable growth and value accretion for our shareholders,¡± he continued.
In Europe, TWE reported a 2% EBITS growth to AU$49.5 million, driven mainly by what the company calls ¡®masstige brands¡¯, notably Wolf Blass, Lindeman¡¯s Gentlemen¡¯s Collection and 19 Crimes.
In Australia and New Zealand, the company reported 23% EBITS growth to AU$136.1 million and an EBITS margin of 22.7% driven by Masstige-led premiumisation in Australia, strong retail partnerships, and ongoing focus on managing costs, according to the company.
On TWE¡¯s outlook, Clarke added: ¡°F19 is set to be an exciting year for TWE. We have the wine, the brands, the business models and the organisational talent to propel our Company into its next phase of growth that will see TWE become the world¡¯s most celebrated wine company and deliver a 5yr EBITS CAGR of 25%.¡±
(https://www.thedrinksbusiness.com/2018/08/treasury-wine-estates-posts-34-profit-growth/)