Australia's Treasury Wine half-year profit rises on Penfolds strength, but misses estimate (updated)

Treasury Wine Estates

12/02/2025 22:02

(Adds details and background in paragraphs 2-5, 7)
       Feb 13 (Reuters) - Australia's Treasury Wine Estates
 TWE.AX  posted a 32.5% rise in its first-half profit on
Thursday, driven by strong growth in its luxury brand Penfolds
and higher contribution from DAOU vineyards.
    The country's top winemaker is present in three price
segments — luxury (more than A$30 per bottle), premium (between
A$10 and A$30) and commercial (below A$10).
    Treasury Wine hiked prices for its Penfolds brand last year
to keep up with the increased demand following the removal of
Chinese tariffs on Australian wine.
    Penfolds' performance was driven by strong Bin & Icon
portfolio shipments to Asia, reflecting the re-establishment of
the Australian Country of Origin portfolio, it said.
    Its Treasury Americas division benefited from an increase in
portfolio availability and strong growth in the DAOU brand.
    The company's net profit after tax for six months ended
December 31 was A$220.9 million ($138.73 million), compared with
A$166.7 million a year ago. The Visible Alpha consensus estimate
was A$241.6 million.
    The Melbourne-based firm also declared an interim dividend
of 20 Australian cents per share, compared with the 17
Australian cents last year.
    
    
($1 = 1.5924 Australian dollars)

 (Reporting by Sherin Sunny and John Biju in Bengaluru; Editing
by Shilpi Majumdar)
 ((John.Biju@thomsonreuters.com))