Treasury Wine Estates (TWE) H2 2025 earnings summary

Executive summary

• Net sales revenue increased 7.2% to $2.9 billion and EBIT/EBITS grew 17% to $770.3 million, led by Penfolds and the full-year contribution of DAOU in the U.S.

• Organic NSR declined 1.1% due to Premium and Commercial portfolio declines, but luxury-led growth offset these.

• Penfolds saw strong results, especially with the return of the Australian COO portfolio to China and continued momentum in Asia.

• Treasury Americas' growth was led by DAOU, though moderated by lower US demand; Treasury Premium Brands saw declines but improved in 2H25.

• Announced a $200 million share buyback for FY26, to be executed progressively and funded from existing liquidity.

Financial highlights

• Net profit after tax increased 15.5% to $470.6 million; EPS up 10.8% to 58.0 cents; ROCE improved to 11.9%.

• EBIT/EBITS margin expanded 2.2 points to 26.2%; gross profit margin improved 3.3 points to 48.6%.

• Final dividend of 40 cents per share (70% franked), up 11.1% year-over-year, payout ratio at 69%.

• NSR per case increased 10% to $138.

• Material items included DAOU integration costs, UK EPR impact, and asset sales, totaling $7.1 million pre-tax.

Outlook and guidance

• FY26/F26 EBIT/EBITS growth expected for Penfolds, with low to mid double-digit growth and margin around 44%.

• Treasury Americas expects modest EBIT/EBITS growth, contingent on mitigating reduced California shipments; $50 million NSR impact expected from distributor transition.

• Treasury Collective's top-line decline expected to moderate, with growth from priority brands partially offsetting commercial declines.

• $200 million on-market share buyback to be completed through FY26.