TWE - Treasury Wine Estates

[frugal.rock]

Interesting to see on the Idiot Box last night, that the Chinese Government is lifting the tariff on Australian wine.
Maybe the gut-rot they have been buying elsewhere is not sitting too well with the locals.
This news should make the wine industry happy.

Old news that it was going to happen, but good to hear it's now occurred.
While TWE did get a rise out of the rumour, I don't see a sell the news event.
Could be ripe for a further run up from here.
Daily then monthly chart.

 

[JohnDe]

Rumour of a split has increased.

Treasury Wine CEO Tim Ford said that bringing the function together with premium brands would unlock future opportunities for the strong consumer brands within the premium business.​

Treasury Wine has restructured one of its wine divisions​

Treasury Wine Estates has announced a restructure of its premium brands division that could be the first step in an eventual spin off, demerger or sale of the wine arm as the winemaker pours more focus into its luxury and higher priced wines, such as Penfolds.

The restructure, although minor in impact, will add more punch to the group’s premium brands division - whose portfolio of wines include many cheaper or commercial brands such as Wynns, 19 Crimes, Lindeman’s and Squealing Pig - and has also seen the departure of that division’s managing director.

The company said on Thursday it would integrate its global revenue growth function into its premium brands arm in a move to unlock growth opportunities for its priority premium brands, strengthen innovation, deepen engagement with consumers and customer partners and increase operating efficiencies within the premium business.

The global revenue growth pillar was established in 2023 and is responsible for driving enterprise-wide revenue opportunities, including growth plans for current and future global brands, enterprise-wide innovation development, and enhancing consumer understanding across Treasury Wine Estates.

The global revenue growth pillar employs around 30 people as well as housing a key creative team, and has specialised in dreaming up new innovative and growth ideas for Treasury Wine’s brands, and in particular those more affordable, cheaper wine labels.

Treasury Wine CEO Tim Ford said that bringing the function together with premium brands would unlock future opportunities for the strong consumer brands within the premium business.

“Integrating our global revenue growth capabilities within Treasury Premium Brands, will enhance our ability to strengthen these brands, foster cutting-edge innovation and deepen our engagement with consumers and customer partners.”

As a result of combining the two groups, Peter Neilson, divisional boss of premium brands will leave the company after 12 years with the business to pursue new career opportunities. He will be replaced by Angus Lilley, previously global chief revenue growth officer. These changes come into effect on July 1.

The changes will be viewed by many investors and analysts within the context of a strategic review currently underway at Treasury Wine which has as part of its brief to review the future structure of the premium brands arm. It has long been speculated Treasury Wine will look divest the arm.

Last week Mr Ford held an investor day at its Californian vineyards, and confirmed that work to assess the future operating model for Treasury Wine’s global portfolio of premium brands was continuing, and an update would be provided in August. This would be likely at the full-year results.

Treasury Wine, the makers of Penfolds, Wolf Blass and Pepperjack, also reconfirmed its earnings guidance despite cost of living pressures draining drinkers of their wine budgets. Mr Ford underlined the winemaker’s view that long-term trends for the wine industry would be driven by the continued growth in luxury and premium wine sales, consolidation of distributors and demographic changes as baby boomers make way for Gen Z and millennials.

This “premiumisation” of the wine market had helped reinforce the need for Treasury Wine Estates to push further into the higher priced end of the market – particularly the US which is the largest luxury wine market in the world – and the acquisition of DAOU Vineyards helped to give the Australian winemaker extra punch and presence there.

The wine CEO said Treasury Wine’s 2024 EBIT would be in the range of $223m to $228m, reflecting luxury portfolio growth, supported by increased availability, with premium portfolio revenue broadly in line with the previous corresponding period.

He said earnings from its recently acquired DAOU Vineyards of approximately US$24m were in line with expectations of being in the mid to high single-digit earnings per share accretion in fiscal 2025, which is the first full year of ownership.

Treasury Wine shares closed up 0.2 per cent on Thursday, at $11.96 each.

 

[divs4ever]

Rumour of a split has increased.

Treasury Wine CEO Tim Ford said that bringing the function together with premium brands would unlock future opportunities for the strong consumer brands within the premium business.​

cheers

will try to remember to keep track of the outcast ( that is where i normally make a profit )

 

[finicky]

Afternoon report comment from Market Matters:

• Treasury Wines (TWE) +2.73% rallied ahead of an investor day tomorrow, they should articulate their strategy to ramp up again in China

 

[finicky]

Market Matters afternoon report:

Treasury Wines (TWE) $12.35

TWE +2%: Solid result for TWE, pretty much inline with expectations with their US business outperforming. Revenue $2.81 billion, +13% y/y, vs estimate of $2.78 billion Earnings per share of $0.523 vs. consensus of $0.52 Ebits $658.1 million, +13% y/y, compared to consensus of $659.9 million Margins solid at 24% in line with expectations Penfolds earnings of $421.3 million, up +16% y/y Final dividend per share $0.19 vs. $0.17 y/y TWE guidance for FY25 of Ebits $780 million to $810 million was solid, however, consensus was already at $806m, hence no positive SP catalyst.

TWE​ MM remains long & bullish TWE

Treasury Wines (TWE) 15/08/2024​

 

[rcw1]

Good morning published today (22/10/24) via New Corp media outlets (Journalist - Valerina Changarathil)

The volume and value of Australian wine exports to China have surged after the removal of import duties in late March, according to a new Wine Australia export report, but it’s too early to celebrate.
In the 12 months ended September, overall Australian wine exports increased by 34 per cent in value to $2.39bn and by 7 per cent in volume to 643 million litres. The value of shipments to mainland China increased by $604m to $612m, while volume increased by 58 million litres to 59 million litres.
“These are the highest levels of shipments by both volume and value since the 12 months ended August 2021, and the growth was driven by the re-entry of Australian wine exports to mainland China…,” the report states.
Of the 927 businesses exporting Australian wine to mainland China during the 12 months ended September 2024, the top ten exporters by value contributed 68 per cent of the total value and 38 per cent of total volume.
“While the export figures to mainland China are very positive, the impact on total export value is much larger than volume due to the premium price point of most wine entering the market,” said Peter Bailey, Wine Australia’s manager of market insights.
“It’s important to note that shipments in these first six months are likely to be characteristic of re-stocking Australian wine after a long absence,” he cautioned. “Export levels are not equivalent to retail figures, and it will take time before it is evident how Chinese consumers are reacting to having Australian wine back in market.”

Kind regards
rcw1