SYDNEY, AAP – Treasury Wine Estates has eked out a full-year profit despite the global disruption from the coronavirus pandemic and losing a big chunk of its key China market.
The owner of brands such as Penfolds, Wolf Blass and Lindemans on Thursday said net profit for the year to June 30 rose 1.8 per cent to $250 million.
Earnings before interest, tax and the agricultural accounting standard SGARA were nearly flat, easing 0.4 per cent to $510.3 million.
The world’s largest listed wine maker posted a 3 per cent drop in full year revenue to $2.56 billion.
The company has faced strong headwinds and largely been shut out of its main market, China after its government last year slapped 200 per cent-plus tariffs on all Australian winemakers, including Treasury Wine.
That was manifested in a $77.3 million dive in earnings from Mainland China.
“Despite a backdrop of significant external disruption, we have delivered on the priorities we set for ourselves at the start of the year, and therefore we remain very well placed to deliver on the long-term growth ambitions,” Chief Executive Tim Ford said in a statement.
Earnings were largely maintained on the back of strong growth in the mid-range portfolio that includes brands such as Pepperjack, Squealing Pig, Beringer Brothers and Matua in the Americas, EMEA and ANZ markets.
The winemaker declared a fully franked final dividend of 13 cents a share, up 62 per cent from a year ago.
TREASURY WINE FY RESULTS
* Total revenue down 3.0pct to $2.56b
* Profit up 1.8pct to $250m
* Fully franked final dividend at 13.0 cents/share vs 8.0 cents year ago.