Treasury Wine Estates posted a 34% rise in net profit after tax of $360.3 million on the back of booming sales in Asia.
The company, the owner of premium brands including Penfolds, declared a fully franked final dividend of 17 cents a share, bringing the full year shareholder payout to 32 cents, up 23%.
The result was on a 1.5% fall in revenue to $2.5 billion, as the company reduced the volume of wine but increased the return per case, part of an ongoing process of the premiumisation of the business.
CEO Michael Clarke described the result as stellar.
“The momentum in our business, together with the strength of our organisational talent, brand portfolios, operating models and customer partnerships, enabled us to execute transformational changes to our operating model in the US and still deliver strong profit growth,” he says.
The company expects growth of 25% in EBITS (earnings before interest and taxes) in 2019.
“F19 is set to be an exciting year for TWE,” says Clarke.
“We have the wine, the brands, the business models and the organisational talent to propel our company into its next phase of growth that will see TWE become the world’s most celebrated wine company.”
In 2018, Americas reported a 2% fall in earnings to $193.0 million and a margin up two percentage points to 20.1%, reflecting the impact of changes to the route-to-market in the US, which reduced shipments.
Asia reported 37% EBITS growth to $205.2 million driven by demand.
Europe reported 21% EBITS growth to $49.5 million.
Australia and New Zealand reported 23% EBITS growth to $136.1 million driven by premiumisation in Australia, strong retail partnerships, and ongoing focus on managing costs.
The results in detail:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.