Treasury Wine Estates (TWE) investor relations material

Executive summary

• FY26 EBITS was AUD 492.3m, 36.1% lower year over year but above guidance; Penfolds led results.

• Statutory NPAT was a loss of AUD 1,078.7m, driven by AUD 1,308.7m in post-tax material items, mainly U.S. asset impairments.

• Penfolds global depletions grew, led by China (+34.7%), Asia ex-China (+18.1%) and Australia (+5.7%).

• Customer inventory rebalancing and actions to reduce China parallel imports progressed; the Americas strategic review is underway.

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

Financial highlights

• NSR fell 12.8% to AUD 2,561.0m, with declines across all divisions.

• NPAT before material items and SGARA was AUD 275.3m, down 41.5%; EPS on the same basis fell 41.3% to 34.1 cents.

• Gross profit margin declined 2.9 points to 45.7%; EBITS margin fell 7.0 points to 19.2%.

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

• FY26 CapEx was AUD 113.4m: AUD 70.7m maintenance and replacement, and AUD 42.7m growth investment.

Outlook and guidance

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

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

• FY27 guidance includes AUD 40m of ASCENT savings; the program targets AUD 100m annual savings at full run rate by FY29.

• Revenue growth is expected from FY28 as inventory rebalancing completes; long-term EBITS margin target is 25%+.

• Leverage is expected to peak at 2.8x and fall below 2.0x by FY28 end.