Four out of five ain’t bad: Treasury Wine

17 February, 2012 by

By James Atkinson

Of Treasury Wine Estates' five brand business units, Penfolds, Wolf Blass, Lindeman's and Rosemount all delivered growth in the first half of the 2012 financial year, the company has reported.

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Treasury Wine Estates CEO David Dearie today said he was pleased with the company's progress against its priorities for the six months ended December 31, 2011.

"The group reported EBITS of $91.7 million, up 0.2 per cent on last year despite headwinds of subdued consumer confidence, reduced retailer inventory in Canada an increasingly competitive retail environment and a strong Australian dollar," he said.

"On a constant currency basis, EBITS increased 16.5 per cent, our fourth consecutive half of EBITS growth."

Dearie said overall volume declined by some 1.1 million cases or 6.2 per cent, which could mostly be attributed to the UK market.

"As I have previously stated, we are focused on growing volume in the sectors where we see sustainable longer term profits and we are therefore prepared to walk away from unprofitable volume," he said.

"Our focus on profitable sustainable volume growth resulted in net sales revenue per case increasing by $1.83 or 3.7 per cent through selective price increases and mix changes."

He said Penfolds, Wolf Blass, Lindeman's and Rosemount delivered EBITS growth over the period, and Beringer brand volume trends had stabilised.

"In September we rolled out the excellent new packaging and creative for Wolf Blass, Rosemount's new package is now reaching the retail shelf and Lindeman's is rolling out the highly successful Early Harvest and Sweet Seasons lines internationally," Dearie said.

"The release of Penfolds Special Bin 620 and the subsequent consumer demand were also a first half highlight."

Treasury's net profit after tax before material items and self-generating and regenerating assets (SGARA) was $58.6 million for the first half of fiscal 2012 and $40 million after tax, SGARA and material items.