Treasury Wine Estates (ASX:TWE)
reported a fall in sales revenue which was impacted by the US commercial portfolio divestment in March last year, the decline in shipments to Mainland China, and reduced commercial volumes in the UK and Australia.
Its net sales revenue declined 10.1 per cent to $1,267 million. The company said the decline was partly offset by strong premium portfolio performance and reduced cost of doing business.
Reported EBITS declined 7 per cent to $262.4 million, however, up 28 per cent excluding Australian COO sales to Mainland China, driven by global distribution growth for Penfolds and growth in the company's other Luxury and Premium portfolio brands.
Net profit after tax of $109.1 million fell 7.5 per cent, while the company declared an interim dividend of 15 cents per share fully franked.
“We are very pleased with our first half results, where we delivered comparable EBITS growth of 28 per cent when taking into account the effective closure of the Mainland China market, while at the same time continuing with the implementation of important changes across the business,” said chief executive officer Tim Ford.
“Following the past two years of significant change within TWE and the markets in which we operate, we have shifted our focus from a mindset of ‘recovery and restructuring’ to one of ‘growth and innovation.”
Shares in Treasury Wine Estates (ASX:TWE)
are trading 9.9 per cent higher at $11.58.