The Treasury Wine Estates Ltd (ASX: TWE) share price has started the day strongly in the green.
Investors are bidding shares in the winemaker higher following an update from the company.
Let's take a look at why the Treasury Wine share price is rallying today.
Treasury Wine share price rallies following sustainability report
Shares in Treasury Wine are flying ahead today amid releasing its sustainability report for 2021.
The winemaker's report covered a wide range of strategies, goals and targets as part of its 2025 blueprint.
The topics covered by the company's report include the risks of climate change, inclusion, diversity and sustainable production.
Highlight's from Treasury's report included reaching 100% renewable energy by 2024 and achieving 'net zero' by 2030.
Other highlights from the company's report included;
- Comprehensive review of our water usage and footprint at a catchment level in F22
- 10% reduction in Serious Safety Incident Frequency Rate
- 50% women in senior leadership by 2025
- 100% of product packaging to be recyclable, reusable, or compostable by 2022
- 100% of product packaging to comprise 50% average recycled content by 2025
In a push to reduce its overall energy usage, Treasury Wine has stepped up the installation of solar panels on many of its sites.
Treasury had flagged its intentions to shift to cleaner energy earlier this year in its annual report.
How did Treasury Wine perform in FY21?
Late last month, shares in Treasury Wine received a boost following a promising full year report for FY21.
Despite facing multiple headwinds, the winemaker was able to post a result that beat analyst expectations.
Highlight's from Treasury Wine's report included;
- Net sales revenue down 3% to $2,569.6 million
- Earnings before interest, tax, SGARA and material items (EBITS) down 0.4% to $510.3 million
- EBITS margin increased 0.6ppts to 19.9%
- Net profit after tax up 1.8% to $250 million
- Fully franked final dividend up 62.5% to 13 cents per share, bringing full year dividend to 28 cents per share
Treasury Wine also noted a fresh start for FY22, as the company transitions to a new operating model under three brand-led portfolio divisions
Snapshot of the Treasury Wine share price
The Treasury Wine share price has surged more than 28% since the start of the year.
Shares in the winemaker have also received a boost recently from positive broker coverage.
At the time of writing, the Treasury Wine share price is up more than 2.5%, trading at around $12.20.