Treasury Wine's Penfolds strength in Asia continues to outpace market, Citi says
BUZZ-Treasury Wine's Penfolds strength in Asia continues to outpace market, Citi says ** Citi says Australia's Treasury Wine's TWE.AX Penfolds continues to be underestimated with its performance continuing to buck industry trends
** Says strong depletion growth reflects robust execution and brand strength, with Penfolds continuing to gain share in a challenging market
** Notes investors may be underestimating the sustainability of Penfolds' performance; calls for greater disclosure on distribution points to help assess future growth
** Adds, U.S. market remains challenging and benefits from reduced U.S. vintage production will take time to materialise
** Citi views an exit or partial exit from the U.S. business as increasingly likely following recent impairments and the ongoing strategic review
** Estimates underlying FY27 EBITS would fall about 14% without expected cost savings, assuming flat earnings elsewhere
** YTD, Treasury Wine up over 10%
(Reporting by Rajasik Mukherjee in Bengaluru)
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