Treasury Wine is turning things around.
The company’s shares are up 15% in ASX trade after it delivered significantly upgraded profit guidance.
Treasury says earnings for the first half of the financial year will be around $20-30 million higher than analyst consensus.
The company, which sells some famous wine brands including Penfolds, Wynns Coonawarra Estate, Wolf Blass, Lindeman’s, and Yellowglen, increased its presence in the US market with the acquisition of Diageo Wine last October for $US600 million.
But CEO Michael Clarke said the Asian market was proving a particular source of growth.
“I am delighted to report a strong first half result across all regions,” Clarke said in a statement to the ASX. “Our Asia business performance is particularly pleasing as we benefited from increased shipments to the region ahead of Chinese New Year in February”.
The company now expects Earnings Before Interest, Tax and SGARA (EBITS) for the first half to be “in the range of A$140 – A$150 million; above analyst consensus of circa A$120 million.”
The result for the 12 months ending 30 June 2016 is expected to be “towards the upper end of its guidance range of A$270 – A$290 million
(pre Diageo Wine integration)”.