Treasury Wine Estates – 2025 Interim Results Summary
Overall Tone
Treasury Wine Estates (TWE) results indicate a strong performance, with notable increases in revenue, profitability, and margins. The company continues to benefit from premiumization, strong growth in its Penfolds brand, and the integration of DAOU Vineyards. However, increased costs and restructuring efforts are worth monitoring.
Key Financial Metrics (Half-Year Ended 31 December 2024)
| Metric | 1H FY25 | 1H FY24 | % Change |
|---|---|---|---|
| Revenue | $1,570.4M | $1,313.4M | +19.6% |
| EBITDA (EBITS) | $391.4M | $289.8M | +35.1% |
| Net Profit After Tax (NPAT) | $220.9M | $166.7M | +32.5% |
| Operating Cash Flow | $259.6M | $149.0M | +74.2% |
| Earnings Per Share (EPS) | 27.2 cps | 22.5 cps | +21% |
| Interim Dividend | 20.0 cps | 17.0 cps | +17.6% |
Revenue & Profitability Trends
- Revenue growth of 19.6% was driven by strong demand for luxury wine, particularly in the Penfolds portfolio, and the contribution of DAOU Vineyards.
- EBITS margin expanded to 25.3% (up from 22.5%), reflecting improved pricing and a premium product mix.
- Operating cash flow increased by 74.2%, showing strong cash generation and efficient capital management.
Earnings Before Tax (EBT)
- EBT increased 42% to $322M, supported by higher revenue and cost efficiencies.
- Finance costs rose slightly due to higher debt levels, but the overall impact was manageable.
Outlook Commentary
- TWE remains focused on premiumization and expects further growth from Penfolds and DAOU Vineyards.
- Expansion in China and other Asian markets is progressing well, with strong sales momentum.
- Cost pressures are being managed through price increases and operational efficiencies.
Guidance Statements
- The company did not provide formal earnings guidance but expects continued margin expansion and strong organic revenue growth.
- Further integration of DAOU Vineyards is expected to contribute positively to earnings.
- The dividend reinvestment plan (DRP) remains active, reflecting confidence in cash flow sustainability.
Market Expectations & Observations
- Results exceeded market expectations, particularly in revenue and earnings growth.
- The interim dividend increase suggests confidence in future performance.
- Investors will watch cost management and further integration of acquisitions.
Disclaimer
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:TWE