Treasury Wine Estates (TWE) investor relations material

Executive summary

• FY26 EBITS was AUD 492.3m, ahead of guidance but down 36.1% year over year; statutory NPAT was a loss of AUD 1,078.7m, mainly due to U.S. asset impairments and transformation costs.

• Penfolds delivered strong global depletions, led by China growth of 34.7%; inventory rebalancing and action on parallel imports progressed.

• ASCENT is on track, targeting AUD 100m in annual savings by FY29, including AUD 40m expected in FY27.

• FY27 group EBITS guidance is at least equivalent to FY26, with rebalancing and non-priority brand declines offsetting power-brand momentum and ASCENT benefits.

• A strategic review of the Americas and U.S. divestment processes are underway to improve returns.

Financial highlights

• NSR fell 12.8% to AUD 2,561.0m, with declines across all divisions; EBITS declined 36.1% to AUD 492.3m.

• Statutory NPAT was a loss of AUD 1,078.7m, including AUD 1,308.7m in post-tax material items; NPAT before material items and SGARA was AUD 275.3m, down 41.5%.

• EPS before material items and SGARA was 34.1 cents, down 41.3% year over year.

• Gross profit margin fell 2.9 points to 45.7%; EBITS margin declined 7.0 points to 19.2%, and ROCE fell 4.0 points to 7.9%.

• Net operating cash flow before interest, tax and material items was AUD 535.3m, down AUD 34.7m; cash conversion was 81.4%.

Outlook and guidance

• FY27 group EBITS is expected to be at least equivalent to FY26, with performance weighted to H2 as inventory rebalancing and shipment phasing continue.

• FY27 regional EBITS guidance: Greater China AUD 280–310m; emerging markets AUD 95–115m; Americas ~AUD 50m; ANZ and Europe AUD 100–120m.

• Penfolds growth is expected to be offset by non-priority brand declines and U.S. inventory sell-through; Americas guidance includes customer inventory reduction and nil-margin sell-through.

• Customer inventory rebalancing is targeted for completion by FY28, when depletions-led revenue growth is expected; long-term EBITS margin target is 25%+.

• ASCENT savings of AUD 40m are included in FY27 guidance; the annual savings target is AUD 100m by FY29.