Exclusive: Treasury Wine Estates Posts 11% Sales Growth In First HalfFebruary 18, 2016
Treasury Wine Estates has revealed a strong set of results for the six months through December, marking the first half of its fiscal year. Overall, the company saw an 11% net sales rise to A$1.1 billion ($790m), while EBITS were up 37% to A$147 million ($106m) on an organic basis.
Treasury’s Americas business—its largest region—benefited from favorable currency swings in the first half, with its reported net sales up 22% to A$451 million ($324m), although the rise was a more modest 3% on an organic basis. While overall shipments in the Americas were down 1% to 7.1 million cases, TWE noted that its U.S. portfolio and channel mix is improving, with its Luxury (+21%) and Masstige (+19%) wines enjoying strong depletions momentum, boosted by marketing investments behind its Stags’ Leap, Chateau St. Jean and Beringer Founders Estate brands. The 19 Crimes and Penfolds labels also showed solid growth in the Americas during the period.
“We entered 2016 with the strongest line-up of brand and consumer-led innovation and marketing campaigns. This, together with significantly improved global execution, underpinned an acceleration of our priority brand portfolio performance globally in the first half,” said TWE chief executive Michael Clarke. Clarke added that the company has commenced a “reset period” for the brands it recently acquired from Diageo, and plans to accelerate consumer marketing in some areas of that portfolio.
As SND exclusively reported earlier today, Treasury has appointed Bob Spooner as president of its Americas business, replacing Sandra LeDrew, who has served in the position for four years and will depart at the end of February.
Elsewhere, Treasury saw dynamic growth in its Asia unit, which more than doubled net sales, while its Australia and New Zealand business posted a 5% sales increase and its Europe division slipped 2%.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.