The turnaround of the maker of iconic Australian wine brands Penfolds, Wolf Blass and Wynns is complete.
Treasury Wine Estates more than doubled net profit after tax to $136.2 million for the half year to December as the company positions itself as as a premium quality wine maker rather than a bulk supplier.
The 132.4% jump in the bottom line, compared to the same six months last year, was on a 20.2% jump in revenue to $1.368 billion and improved margins, up 4.3 percentage points to 17.5%.
“Today’s result announcement demonstrates that we are executing on all the initiatives we have communicated to the market and importantly, that TWE is continuing to deliver sustainable value to its shareholders,” says CEO Michael Clarke.
All regions delivered double digit growth. And the Asia business reported 75.6% earnings growth to $79.0 million and a margin of 36.2%.
The company expects second half earnings to be be broadly in line with the first six months of the financial year.
TWE has been restructuring, concentrating on a smaller range of premium wines rather than moving bulk wines, building better routes to market and strict control of inventory.
The restructure started in 2014 with the arrival of Michael Clarke, a former CEO of the UK’s Premier Foods. That financial year, the company posted a loss of $101 million.
Treasury Wine Estates today declared an interim dividend of 13 cents a share.