By James Atkinson
Treasury Wine Estates (TWE) has reported net sales revenue growth of 6.2 per cent and EBITS of $85.2 million for the six months ended 31 December 2014.
CEO Mike Clarke this morning said the result represented 77.5 per cent growth on the prior period, which was in line with expectations.
He said the result was achieved despite the distraction caused by the two private equity proposals during the first quarter.
"While the first half of fiscal 2015 included the benefit of the successful transition of the Penfolds release date, we have also progressed with our overarching strategic initiatives to reset the business," Clarke said.
"While we are at the start of our transition from being an order-taking, agricultural company to a brand-led marketing organisation, the progress we have made to date and the results achieved by the team demonstrate that TWE is starting to address fixing the core of the business and is being set up for sustainable, future success."
Net sales revenue for the half was $882.7 million, up 6.2 per cent on a constant currency basis, with ANZ, Americas and Asia reporting solid growth.
TWE said the transition of the Penfolds release date from March and May to a single date in October was an outstanding success, both from a marketing and execution perspective.
Clarke said: "Supporting the 2015 Penfolds release was the 'Numbers Can Be Extraordinary' marketing campaign together with the Penfolds wine cabinet promotion in Australia."
"Not only have these initiatives been some of the most successful campaigns in the brand’s history, with the wine cabinet promotion now being launched in several countries around the world, they demonstrate a renewed confidence and commitment within our business to execute campaigns of this magnitude, supported by a significant step-up in consumer marketing investment."
Clarke said TWE was now in a strong position to capitalise on the outstanding wines available for sale from the 2010, 2012, 2013 and 2014 vintages.
"However I, together with my management team, remain committed to taking a long-term view and will continue to pursue profitable growth opportunities and make the necessary investments in brands and key growth markets in order to build our sales and marketing reach."