- Full-year sales to end of June increase 6.1% to AUD2.94bn (US$1.91bn)
- Second half of fiscal 2025 declines by estimated 14.4% following H1’s 20.5% leap in sales
- Penfolds sales up in full year by 6.8%
Treasury Wine Estates has surpassed its pre-pandemic annual sales – finally – booking a 6% top-line lift from the 12 months to the end of June.
In a set of results skewed by the timing of the acquisition of California’s Daou Vineyards business in late 2023, the group appeared to be down markedly (-14.4%) in the second half of its fiscal 2025 on H1’s 20.5% sales jump. The six-month performances displayed less turbulence on an organic basis (not including Daou), however, rising by 5.1% in H1 before dipping by an estimated 7.2% in H2 to hit -1.1% for the full year.
Twelve-month volumes were down by 2.7% on the corresponding period to the end of June 2024.
In the final appearance not only of the Treasury Premium Brands reporting division but also of outgoing CEO Tim Ford, today’s results announcement re-emphasised the importance to TWE of the Penfolds portfolio; the brand’s full-year sales were up 6.8% on a 4% volumes decline as the group “successfully re-established” Penfolds’ Australian country-of-origin range in China. Allocation of stock to China following the country’s removal of tariffs on Australian wine in March last year resulted in “lower shipments [of Penfolds] to other key markets”, hence the dip in volumes.
Of note, alongside Treasury’s purchase in December of a Chinese winery to support Penfolds’ multi-origin strategy, was TWE’s observation in the country of a “shift in alcohol consumption behaviour” in recent weeks. “Preferences and occasions [have] evolved from large-scale banqueting to smaller-scale business and lifestyle-oriented occasions,” the company said.
Over at Treasury Americas, home to Daou and dominated by the US, comparable sales excluding the former were down 4.9% but increased by 15.1% inclusive of the ‘new’ addition. Indeed, according to Circana data for 12 months to the end of June, Daou is now “the number one luxury wine brand in the US, with Daou Discovery the number one luxury cabernet”.
Looking lower down the portfolio’s price ladder, and Treasury Premium Brands signed off with a 7.2% sales dip as the Squealing Pig (in Australia and the UK) and Rawson’s Retreat (in China) brands delivering unspecified growth against a wider top-line decline from the division.
TPB has been grouped with Treasury America’s lower-value marks to form the Treasury Collective unit since the start of last month.
“While we continued to face headwinds in a number of markets, we remained laser-focused on … further strengthening the business for long-term growth and achieving strong financial performance, underpinned by Penfolds’ continued momentum and integrating Daou into our ‘Luxury’ portfolio,” said CEO Ford who will stand down at the end of next month. “We also completed transitioning to our new ‘Luxury’ portfolio-led operating model … .
“I am incredibly proud of the transformation we’ve delivered over the past five years … . I am confident that the … business is entering fiscal ’26 well-positioned to harness the attractive opportunities in the luxury wine category.”
See below for a company-sourced video, featuring Ford.
