Treasury Wine Estates divests US assets

Company News

by Jessica Ellerm


Treasury Wine Estates (ASX:TWE) has announced it will divest its non-core commercial brand portfolio in the US.
 
The portfolio consists of 12 brands and will be sold at approximately book value. Around one million cases of wine are included in the divestment.
 
The sale is expect to have nil impact on Treasury’s earnings for FY16 thanks to savings made in supply chain optimisation and strong earnings growth from two other global Treasury portfolios.
 
The company has also indicated that due to its active hedging strategy, it expects no material change to its FY17 earning expectations in light of the recent depreciation of the Great British Pound.
 
Treasury Wine Estates reported a net profit of $60.7 million at 31 December 2015.

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