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Treasury Wine Estates Limited (ASX:TWE)

ALERT: Price-sensitive ASX Announcement for TWE
Current share price for TWE : $4.760 -0.73 (-13.30%)+
Announcement
Release
17 Dec 2025 8:39AM
Price at Release
$5.490
Full Release
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Summary
Treasury Wine Estates Limited (TWE) has issued an investor update and outlook for the first half of fiscal year 2026, highlighting performance expectations amid challenging market conditions in the US and China. The company is taking strategic actions to reduce customer inventory levels, particularly in China, to manage parallel import activity and protect brand strength. Financial projections for 1H26 include EBITS between $225 million and $235 million, with leverage expected to exceed the target range temporarily. TWE is also launching an organization-wide transformation, 'TWE Ascent,' aimed at long-term sustainable growth and significant cost savings. Penfolds and Treasury Americas face differing market dynamics, with Penfolds showing growth in depletions, while Treasury Americas adjusts to weakened market trends, particularly in California.
Key Points
  • TWE provides an update on performance expectations for 1H26.
  • Market dynamics in the US and China have weakened, impacting depletion growth expectations.
  • TWE plans strategic actions to reduce customer inventory holdings in the US and China.
  • 1H26 EBITS is expected to range between $225m to $235m.
  • Leverage is expected to be above the target range for two years.
  • TWE introduces a transformation program, TWE Ascent, targeting $100m per annum in cost improvements.
  • Penfolds continues to show depletion growth in key markets but faces challenges in China.
  • Treasury Americas reports moderated luxury wine market trends, impacted by distribution changes.
  • TWE is adjusting its inventory management to align with moderated demand expectations.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.