By Andy Young

Treasury Wine Estates (TWE) has upgraded its profits forecast for the first half of the year after strong sales, especially in China.

TWE’s chief executive Michael Clarke said the company’s first half of the year had been strong across the board, but highlighted the impressive showing in Asia.

“I am delighted to report a strong first half across all regions,” Clarke said. “Our Asia business performance is particularly pleasing as we benefited from increased shipments to the region ahead of Chinese New Year in February.”

The company now expects that its earnings before interest, tax and SGARA (EBITS), will be in the range of $140-$150 million, well above the consensus forecasts of analysts, which were $120m.

The company also said that it expects its EBITS for the 12 months ending 30 June 2016, to be “towards the upper end of its guidance range of $270-$290m”.

That forecast is before the integration of the Diageo Wine business which it bought last year and which TWE said is “progressing well”. TWE added: “The Company expects the second half of fiscal 2016 will be a re-set period for the Diageo Wine business, with TWE accelerating investment in consumer marketing at the same time delivering a more sustainable base business.”

TWE will now officially detail its half-year accounts on Thursday 18 February.

The Shout Team

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