Treasury Wine Estates, the owner of premium brands including Penfolds, reported a 37% increase in after tax profit to $187.2 million for the year year to December on the back of strong sales in Asia.
The company increased dividends to 15 cents a share, 75% franked, up two cents on the same six months last year, as the group continues its transformation from a bulk wine producer to a supplier of the top end of the market.
All regions reported strong earnings growth.
In Asia, earnings were up 48% to $117 million, 8% in the Americas to $100.4 million, 17% in Europe to $24 million, and 28% in Australia and New Zealand to $68.2 million.
The result sets the company up for a record 2018 financial year, as this chart shows:
“Asia, Europe and ANZ, are outperforming expectations, and we are now taking some exciting steps to really transform our route-to-market in the United States, and further strengthen the long-term outlook for the Americas region,” says CEO Michael Clarke.
“I am very excited about the outlook for the company, and am confident that the business model changes we are making this year, along with an increased availability of high-end wine, will set TWE up for accelerated growth in F19, F20 and beyond.”
The 2018 half year results in detail: