By Andy Young
Treasury Wine Estates (TWE) has announced the sale of 12 US brands as it continues to manage-down its portfolio of brands in the country.
The divestment of the non-core commercial brands comprised around one million cases of wine, which were sold at “approximately book value”.
In a statement to the ASX about the deal TWE said: “The divestment will have nil impact on TWE’s earnings in F16 and beyond as the contribution from the divested brands is covered by Cost of Goods Sold savings from the company’s Supply Chain Optimisation initiative and continued strong earnings growth from TWE’s Luxury and Masstige portfolios, globally.”
The company added that the announcement “represents a further step towards delivering a high-teens EBITS margin by F20.”
TWE also said that it is expecting to deliver F16 EBITS in line with market expectations of between $330m and $340m “driven by continued momentum across all regions”, with the year’s results scheduled to be published next month.