Treasury Wine Estates Net Profit Up 55% In 2017
Australia's Treasury Wine Estates (TWE) saw profits for its 2017 financial year increase by 55% to reach AUS $269.1 million after tax.
In Australia and New Zealand, the wine producer's operating profit increased by 24%, while the growth figure for China and Japan stood at 47%. Growth in Europe was more moderate, up 0.6%, as it was impacted negatively by Brexit, however, the company's operating profit increased by 44% in the Americas.
In terms of sales volumes, the winemaker saw an improvement of 8.5% over the year. It also noted that the acquisition of Diageo Wine 'continues to deliver profitability upside to TWE'.
TWE CEO Michael Clarke said, “I am delighted to report a strong F17 result, highlighted by robust earnings growth across every region and accelerated EBITS margin and ROCE accretion.
“This result was delivered despite continuing to sell through short vintages of Luxury and Masstige wine, and highlights our continued focus on strategic customer partnerships in all our markets, significantly enhanced sales and marketing execution, and optimisation of our cost base”.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly.Click subscribe to sign up for ESM: The European Supermarket Magazine.