The troubled Treasury Wine Estates has returned to profit after an extensive business restructure, moving from an order-taking agricultural company to a brand-led marketing group.
Statutory net profit for the full year was $77.6 million, an improvement of $178.5 million on the previous $101 million loss.
The business, which has the brands Penfolds, Rosemount and Wolf Blass, is in the process of shifting to more high end wine sales rather than big volumes.
Sales revenue was up 8.4% to $1.848 billion, helped by a lower Australian dollar.
The company found more than $40 million in cost savings in 2015 and has identified another $15 million for 2016.
CEO Michael Clarke says 2015 was a reset year with substantial strategic, operational and cultural change.
“The team has achieved in just 12 months, what might reasonably be expected to occur over a two to three year period,” he says.
“Our ambition is to become the world’s most celebrated wine company; a company that enriches
peoples’ lives with quality wine brands.”
Clarke says the new financial year is about growth.
“By the end of the first half of fiscal 2016, 10 of our 15 priority brands will either be relaunched, refreshed via outstanding innovation or promoted via exciting advertising and brand activation campaigns,” he says.
The company declared an unfranked final dividend of eight cents a share, up one cent.
The results in detail: