Treasury Wine Halts Trading To Review First Half Results
January 28, 2014Treasury Wine Estates (TWE) has suspended trading of its shares on the Australian Stock Exchange while it reviews its preliminary financial results for the six months through December, its fiscal first half.
Treasury said the halt in trading will remain in place “until the commencement of normal trading on Thursday 30 January 2014, or the release of an announcement by TWE in relation to this matter.”
Reports out of Australia suggest the review may be due to worsening conditions in China’s wine market, one of Treasury’s key focuses. The Chinese government’s crackdown on luxury entertaining over the past year has resulted in an abrupt downturn in the Cognac and Chinese white spirits categories among others. Along with those offerings, wine is also a fixture in the government entertaining scene in China.
Treasury interim CEO Warwick Every-Burns warned in October that earnings for the first half would be down due to lower shipments in the U.S. and an increased investment behind its brands in Asia. But he added that the group expected to meet a full-year earnings range of $230 million to $250 million ($202m-$220m).
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