Treasury Wines Estate’s (TWE) Chief Executive Officer, Tim Ford, has outlined the company’s positive start to the 2025 financial year at its recent annual general meeting.
Ford also highlighted some of the key highlights for the business in the last financial year including the US$900m acquisition of the Daou Vineyards in the United States, the removal of tariffs on Australian wine imports to China and strong net sales revenue (NSR) driven by the luxury portfolio.
Ford told shareholders at the AGM: “We have made a positive start to F25, with our luxury-led focus seeing us deliver double-digit organic NSR growth across the Group in the first quarter, driven in part by phasing benefits compared to the prior year.
“Penfolds momentum remains particularly strong in Asia and Australia, and we are on-track to deliver our guidance for low-double digit divisional EBITS growth this fiscal year.”
Ford also highlighted who TWE is performing in the re-opened China market.
“In China, we are making good progress on our plans to re-build distribution and availability for our Australian country of origin in the market, with performance in the quarter in line with our expectations, including through the recent Mid-Autumn festival period,” he said.
“Pleasingly, customer re-ordering and depletions for the Bins and Icons portfolio are tracking well to plan.”
Ford added: “In Treasury Americas, the implementation of enhanced distribution arrangements following the acquisition of DAOU was a key execution focus in the quarter, and with that transition now complete, we expect our Luxury portfolio performance to strengthen through the remainder of the year, starting with the key upcoming holiday selling period that covers both Thanksgiving and Christmas.
“Across the remainder of our global portfolio, NSR is in line with the prior year, consistent with our expectations. Therefore, I am pleased to reiterate our guidance for F25 EBITS delivery in the range of $780-810m.
“In closing, fiscal 24 was another successful year for our Company where we made significant progress in transforming our business to become a global, luxury-led leader in wine.
“We look forward to continuing this journey, focused squarely on our ambition to become the world’s most desirable luxury wine company.”