Treasury Wine Estates reported a net profit increase of 39 per cent on a constant currency basis (stripping out exchange rate movements). The company’s sales revenue also saw an increase of 15 per cent.
The winemaker behind Penfolds and Lindeman’s, has lifted its overall EBIT margin by 72 per cent to $146.8 million.
Earnings of Treasury Wine Estates, which also owns Wolf Blass, rose 67 per cent to $56.2 million in the Americas. European earnings more than doubled, but is off a lower base, the company announced in a media release.
“Our interim 2016 result demonstrates a continuation of the momentum delivered in fiscal 2015 and highlights the benefits of having repositioned our business to deliver strong earnings growth on a balanced, sustainable base,” said company CEO Michael Clarke.
Clarke said they entered 2016 with the “strongest lineup of brand and consumer-led innovation and marketing campaigns.”
Treasury Wine Estates also announced its regional earnings mix is becoming increasingly balanced, with each region delivering EBITS growth, as well as EBITS margin acceleration. Australia and New Zealand reported an EBITS growth of 6 per cent to $46.7 million, driven by solid volume growth – in a flat overall wine market in Australia – and favourable portfolio mix.
Revenues rose to $1.1 billion from $935.7 million and the interim dividend was increased by two cents to eight cents a share, unfranked.
Clarke said Treasury’s full year earnings were expected to be at the upper end of the group’s forecast range of $270 million to $290 million.