Treasury Wine Estates (TWE) H1 2026 earnings summary

Executive summary

• EBITS for H1 2026 was AUD 236.4 million, slightly above December guidance, but statutory NPAT showed a loss of AUD 649.4 million due to a significant non-cash impairment of U.S. assets.

• Underlying brand performance remained strong, with positive depletions growth in key markets, especially for Penfolds in China and the U.S. outside California.

• Decisive actions were taken to address parallel imports, reduce customer inventory, and strengthen the capital structure, including suspending the interim dividend.

• The TWE Ascent transformation program is progressing, targeting cost savings and portfolio optimization.

• The company transitioned to a new Luxury-led divisional operating model effective 1 July 2025.

Financial highlights

• Net sales revenue for H1 2026 was AUD 1.3 billion, down 16% year-over-year, with NSR per case falling 5% mainly due to reduced ultra-luxury Penfolds sales and inventory actions in China.

• EBITS margin decreased by 7.1 percentage points to 18.2%; ROCE declined to 9.5%.

• Statutory NPAT loss of AUD 649.4 million, driven by a non-cash impairment of U.S. assets.

• Pre-material items, NPAT was AUD 128 million, EPS AUD 0.158 per share; basic and diluted EPS were both (80.2) cents.

• Net operating cash flow before interest, tax, and material items was AUD 264.6 million, down 38.1% year-over-year; cash conversion at 82.4%.

Outlook and guidance

• Second half EBITS expected to be higher than first half, with Penfolds FY 2026 EBITS forecast at ~AUD 400 million and Treasury Americas at ~AUD 90 million.

• Treasury Collective H2 EBITS expected to exceed H1.

• Full-year CapEx forecast at ~AUD 125 million, with tight control on non-essential spending.

• Management expects continued challenges in the U.S. market and is moderating long-term growth assumptions for the Americas.

• Focus on market execution, cash management, and accelerating the TWE Ascent transformation program.