Shares in Treasury Wine Estate, the owner of labels including Penfolds, Wolf Blass and Wynns, surged higher today.
A short time ago, they were up 9% to $11.03.
CEO Michael Clarke told the company’s AGM today that the 2017 financial year was about growth.
He says the company is on a journey to deliver a group margin that is towards its Asia region margin of 30% plus.
“Where we land — between our current margin of 15% and 30% — will be through continued margin accretion and how much commercial wine TWE maintains in its portfolio,” he says.
“In addition to our organic growth, I believe we have the team, the brands, the regional business models, and the balance sheet to drive incremental growth and margin accretion by securing increased access to Luxury and Masstige fruit.”
The company reported a net profit after tax $179.4 million for 2016, more than double the year before.
Treasury Wine has been shifting its business to the premium end of the market from the mass market.
It is also finding a growing market in Asia with the appetite for the big taste of Australia’s Penfolds and Wolf Blass wines growing in China.
Business Insider Emails & Alerts
Site highlights each day to your inbox.