Treasury Wine Estates Limited (ASX: TWE), is a vertically integrated wine company with a portfolio of luxury, premium and commercial wines, and domestic and international presence. Treasury Wine, under consumer staples sector aims to deliver 25% EBITS margin over time; and the shares of the company were trading at a current market price of $18.96 post market open on July 26, 2018 with a daily price change of -$0.560 and a percentage change of -2.896% noted a day before. With wine exports seen to be growing at a fast rate in 15 years, to reach $2.76 billion as at June 2018, Treasury Wine Estates is witnessing a positive framework with sales to China also rising up about 55 percent.
Treasury Wine’s shares went up to hit $19.34 as at July 25, 2018 gaining 5.5 percent which was just below its 52-week high recorded in May 2018. The stock has gone up by 49.1% over the past 12 months. The annual dividend yield for the stock is 1.45% which is 75% franked. The most recent dividend was of 15c with ex-dividend date of March 07, 2018 and dividend payable date as April 06, 2018. In terms of size, Treasury Wine is the biggest exporter of Australian wine to China. Except for the United States, where the sales dropped by 8 percent to $424 million, good export trends for all major export destinations were unveiled. With this overall trend from Australia, ASX:TWE has also shown the value growth generated in its international destinations, prompting a strengthening of an industry-wide marketing drive which is aimed at lifting the higher priced premium wine in that market.
The US, which is still on the 2nd position as the export destination is still threefold times less than China in terms of the value of total Australian Wine exports. Australian industry witnessed an increase of 55 percent to $1.12 billion for total wine sales to China by all players, and Hongkong and Macau are included in the figure. For the year, total wine exports were up 20 percent. The spectacular growth in exports has largely been driven by Treasury Wine through its Penfolds brand. It is key to note that China overtook the US as the biggest export destination for Australian wine in 2016.
Mike Clarke, the chief executive who leads Treasury Wine is scheduled to report group’s full-year profit result on August 16, 2018,…
