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Treasury Wine Estates Limited (ASX:TWE)

ALERT: Price-sensitive ASX Announcement for TWE
Current share price for TWE : $4.820 -0.67 (-12.20%)+
Announcement
Release
17 Dec 2025 8:40AM
Price at Release
$5.490
Full Release
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Summary
Treasury Wine Estates Limited (TWE) has provided an investor update and outlook for the first half of the financial year 2026. The company reports that the performance of its Treasury Collective portfolio is stable in Australia and EMEA, but faces challenges in the US market due to declining premium wine segment demand. US tariffs on Australian and New Zealand wines are expected to impact earnings, and the company plans strategic actions to manage inventory levels and combat parallel import activity in China, particularly affecting the Penfolds brand. TWE is undergoing a transformation program, TWE Ascent, targeting cost improvements and portfolio optimization, with an expected leverage above the target range for two years. The company remains confident in its ability to achieve profitable growth supported by a strong brand portfolio and strategic initiatives.
Key Points
  • Treasury Collective portfolio performs well in Australia and EMEA.
  • US tariffs expected to impact earnings by $10m in FY26.
  • 1H26 earnings before interest and tax (EBITS) expected to be $225m-$235m.
  • Transformation program TWE Ascent targets $100m annual cost improvement.
  • Strategic actions include reducing inventories in China and the US.
  • Penfolds brand faces pricing disruption from parallel imports in China.
  • Leverage is expected to be above target for approximately two years.
  • Company confident in long-term profitable growth through strategic initiatives.
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.