Treasury Wine Estates (TWE) H1 2025 earnings summary

Executive summary

• Luxury-led strategy drove strong performance, with EBITS up 35.1% to AUD 391.4 million, led by Penfolds and DAOU contributions, offsetting lower Treasury Premium Brands shipments.

• Luxury portfolio net sales revenue rose 52% (18.2% organic), now 56% of group NSR; premium and commercial portfolios declined 5%.

• Penfolds saw robust growth in Asia, especially China, with successful re-establishment of the Australian portfolio.

• DAOU integration in Treasury Americas progressing, with upgraded cost synergy targets to US$35 million.

• Net profit after tax rose 32.5% to $220.9 million, with EPS at 27.2 cents.

Financial highlights

• Group NSR increased 20.2% reported, 20.5% constant currency, and 5.1% organically, reaching $1.5bn.

• NSR per case up 16% to $138; EBITS margin expanded 2.8 points to 25.3%.

• Net profit after tax up 31.5% to $239.6 million; EPS up 20% to $0.295.

• Cash conversion at 90.4% (83.8% excluding inventory changes); leverage at 2x, within target range.

• Interim dividend of AUD 0.20 per share, 70% franked, up 17.6% year-over-year.

Outlook and guidance

• F25 EBITS forecast at AUD 780 million, lower end of AUD 780–810 million range, mainly due to reduced expectations for Treasury Premium Brands.

• Penfolds guidance for low double-digit EBITS growth in F25, with 15% annual EBITS growth reiterated for F26 and F27.

• Treasury Americas expects second-half weighted EBITS, driven by DAOU momentum and synergy realization.

• Full-year cash conversion expected at ~80% (excluding inventory changes).

• CapEx for F25 to be slightly higher, with up to AUD 65 million in growth CapEx planned.