Treasury Wine Estates Ltd
ASX:TWE

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Treasury Wine Estates Ltd
ASX:TWE
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Price: 5.55 AUD -1.6% Market Closed
Market Cap: 4.5B AUD

Treasury Wine Estates Ltd
Investor Relations

Amidst the sprawling agricultural landscapes and vibrant grapevines lies Treasury Wine Estates Ltd., a significant player in the global wine industry. Born from the vintage roots of Australia's rich winemaking heritage, the company has evolved into a global purveyor of wines, boasting a portfolio that includes some of the world's most revered brands. With its origins tracing back to colonial vineyards, Treasury Wine Estates deftly combines tradition with modernity, leveraging centuries-old techniques alongside contemporary innovation. The company's prowess in viticulture and meticulous attention to winemaking craft are evident in its array of premium wines that captivate the taste buds of connoisseurs worldwide.

Treasury Wine Estates operates by masterfully navigating the entire value chain of winemaking—from nurturing grapes to crafting exquisite bottles, and ultimately, to marketing the finished product on a global stage. The company's business model thrives on its ability to cultivate and source quality grapes either from its own vineyards or entrusted partners. Post-harvest, the grapes undergo a well-honed transformation process in their state-of-the-art wineries. Once bottled, these wines are marketed not just for their flavor but as an experience, often associated with luxury and sophistication. This diversification across mid-range to high-end products, coupled with a keen focus on expanding its international market presence, not only strengthens its brand identity but also ensures robust revenue channels. In essence, Treasury Wine Estates turns the art of winemaking into a strategic enterprise, ripe with both tradition and innovation.

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Last Earnings Call
Fiscal Period
Q2 2024
Call Date
Feb 14, 2024
AI Summary
Q2 2024

EBITS Decline: EBITS fell 6% to $289.8 million, with margins down 1.4 percentage points to 22.6%, mainly due to deliberate shipment phasing of Penfolds and higher COGS.

Guidance Update: FY24 organic EBITS growth guidance trimmed to mid to high single-digit, driven by softness in Treasury Premium Brands in Asia; DAOU expected to add $23–25 million in second-half EBITS.

Luxury Portfolio Strength: Global luxury net sales revenue rose 4%, offsetting declines in premium and commercial segments; Penfolds continued momentum in Asia and Australia.

Acquisition Impact: DAOU acquisition completed, with expected immediate benefits to earnings and positioning Treasury Americas as the leading US luxury wine business.

China Tariff Review: Management anticipates a decision on Chinese tariffs in March and is prepared to re-enter the market if tariffs are removed, but guidance excludes any China upside.

Dividend: Interim dividend set at $0.17 per share, a 1 cent drop per share but 6% higher total payout due to increased share count.

Cash Conversion & Leverage: Cash conversion at 75%, below the 90% target; leverage increased to 2.2x following DAOU funding, but company maintains strong liquidity.

Key Financials
EBITS
$289.8 million
EBITS Margin
22.6%
Penfolds EBITS
$187 million
Penfolds EBITS Margin
41.7%
Treasury Americas EBITS
$93 million
Treasury Americas EBITS Margin
20.8%
Treasury Premium Brands EBITS
$45.8 million
Treasury Premium Brands EBITS Margin
11.8%
Cost of Doing Business Margin
19.9%
Cash Conversion
75%
Leverage
2.2x
Interim Dividend per Share
$0.17
Dividend Payout Ratio
76%
Return on Capital
11.1%
Group Net Assets
up $879 million
Operating Cash Flow Before Interest, Tax, and Material Items
$274 million
Total CapEx
$66 million
Liquidity
$1.2 billion cash and undrawn facilities
Material Items
$37.5 million (pre-tax); $29 million after tax
Earnings Call Recording
Other Earnings Calls
2024
2023
2021

Management

Mr. Timothy Ford M.B.A.
CEO, MD & Executive Director
No Bio Available
Mr. Stuart Ronald Boxer B.E., BEng (Hons)
Chief Financial & Strategy Officer
No Bio Available
Ms. Kate Whitney
Chief Digital & Technology Officer
No Bio Available
Ms. Sarah Turner ACIS
Chief Legal & Corporate Affairs Officer
No Bio Available
Ms. Katie Hodgson
Chief People Officer & Staff
No Bio Available
Mr. Tom King
Managing Director of Penfolds
No Bio Available
Mr. Ben Dollard
President of Treasury Americas
No Bio Available
Mr. Kerrin Petty
Chief Supply & Sustainability Officer
No Bio Available
Justin Pipito
Deputy Chief Financial Officer
No Bio Available
Ms. Alexandra Lorenzi B.A., L.L.B.
Group Company Secretary
No Bio Available

Contacts

Address
VICTORIA
Melbourne
161 Collins Street
Contacts
+61385333000.0
www.tweglobal.com