The Treasury Wine Estates Ltd (ASX: TWE) share price is in focus after FY25 net sales revenue climbed 7.2% to $2.9 billion. EBITS increased 17% to $770.3 million, with margin improving to 26.2% on stronger premium mix.
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What did Treasury Wine Estates report?
- Net sales revenue: $2.9 billion, up 7.2% year-on-year
- EBITS: $770.3 million, up 17.0%; EBITS margin 26.2%
- NPAT: $470.6 million, up 15.5%
- EPS: 58.0 cents, up 10.8%
- Full-year dividend: 40 cents per share; payout ratio 69%
- Cash conversion 87.4%; net debt to EBITDAS 1.9x within target range
What else happened in F25?
Penfolds delivered another strong year, led by the return of its Australian range to China and broader Asian momentum. EBITS rose 13.8% with margin at 44.4%, and Asia ex-China depletions increased 18% year-on-year.
Treasury Americas grew with a full-year contribution from DAOU, now the number one US luxury wine brand. The division holds a 12% share of the US luxury segment, though broader US demand softened late in the year.
Treasury Wine Estates announced an on-market share buyback of up to $200 million for FY26 and shifted to a new divisional model. Treasury Americas becomes luxury-focused and a new global premium division, Treasury Collective, has been formed.
What did Treasury Wine Estates management say?
Commenting on the result, Treasury Wine Estates Chief Executive Officer Tim Ford said:
Overall, I am pleased with TWE's fiscal 25 performance. While we continued to face headwinds in a number of markets, we remained laser-focused on executing our business plans, further strengthening the business for long-term growth and achieving strong financial performance, underpinned by Penfolds' continued momentum and integrating DAOU into our Luxury portfolio. We also completed transitioning to our new Luxury portfolio-led operating model, a structural evolution that enhances our strategic clarity and positions us well for the future. I am incredibly proud of the transformation we've delivered over the past five years and want to thank our people for their passion, resilience and commitment to delivering on our strategy. I am confident that the team and the business is entering fiscal 26 well positioned to harness the attractive opportunities in the Luxury wine category.
What's next for Treasury Wine Estates?
Treasury Wine Estates expects another year of EBITS growth in FY26. For Penfolds, management guides to low-to-mid double-digit EBITS growth, with delivery weighted to the second half and margins around 44%, supported by increased Bin & Icon availability from 4Q26.
Management expects top-line declines to moderate as priority brands grow. Californian distribution changes are currently expected to reduce NSR by about $50 million, with a modest EBITS impact contingent on exit terms with RNDC.
Treasury Wine Estates share price snapshot
Over the past 12 months, Treasury Wine Estates shares have materially underperformed the market. They are down 37%, while the S&P/ASX 200 Index (ASX: XJO) has increased 13%.
