Treasury Wine Estates (TWE), the owner of Penfolds, has withdrawn its full-year guidance for earnings growth in 2025-26. The revision follows weaker-than-expected trading in China for its flagship Penfolds brand and complications related to a distributor handover in the United States. Treasury Wine Estates is a global wine company that owns a portfolio of brands, including Penfolds, Wynns, and Wolf Blass. It is one of the world’s largest wine companies, with vineyards and wineries in Australia, the United States, and Europe.
The company has also temporarily halted its $200 million share buyback program, after already purchasing $30.5 million worth of shares. The change in outlook comes as Sam Fischer prepares to step into the role of chief executive on October 27. The company stated that Penfolds’ sales in China have been slower than initially forecast.
Treasury Wine Estates has retracted its previous guidance for Penfolds, which projected low-to-mid double-digit growth in EBITS for 2025-26 and approximately 15 per cent EBITS growth in 2026-27. These projections have been adjusted due to the underperformance of Penfolds in the Chinese market.
In a statement, TWE noted that while depletions grew in September compared to the same period last year, preliminary data suggests that depletions remain weak relative to the company’s plan. Consequently, the overall 2025-26 guidance has been withdrawn.
