What was Treasury Wine's first-half financial result?

Treasury Wine Estates reported a first-half net loss of A$649 million ($458 million).

Why did Treasury Wine experience a revenue decline?

The company cited US supply chain difficulties and adverse consumer trends in China for its revenue decrease.

What is Treasury Wine's plan for future growth?

Treasury Wine is implementing a turnaround plan targeting A$100 million in annual savings to return to sustainable, profitable growth.

Home / Business and Economy / Treasury Wine's Red Ink: $458M Loss Hits Iconic Brands

Treasury Wine's Red Ink: $458M Loss Hits Iconic Brands

16 Feb

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Summary

Treasury Wine reported a $458 million net loss in the first half.
Revenue declined 16% year-on-year, missing analyst expectations.
Company is implementing a turnaround plan for sustainable growth.

Treasury Wine's Red Ink: $458M Loss Hits Iconic Brands

Treasury Wine Estates reported a substantial first-half net loss of A$649 million ($458 million), a stark contrast to its profit in the prior year. The company's net sales revenue saw a 16% decrease year-on-year, reaching A$1.3 billion and falling short of market expectations. US supply chain issues and declining consumer trends in China significantly impacted the company's performance. As a result, Treasury Wine has temporarily suspended its interim dividend to preserve capital and reduce leverage. CEO Sam Fischer, who began his tenure in October, expressed optimism about the brand's resonance with consumers and is spearheading a transformation plan. This strategy aims to achieve annual savings of A$100 million over the next two to three years by cutting inventories and bolstering brand reputation. The company anticipates improved earnings in the second half of the fiscal year.

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