Treasury Wine Estates posted a 15.5% rise in underlying profit today due to the strong performance of its luxury portfolio.
Australia’s largest winemaker reported A$470.6 million in net profit after tax for the fiscal year, which is higher than last year’s A$407.5 million, marking a 15.5% increase.
Despite the growth, it missed Visible Alpha’s estimate of A$472.1 million.
Revenue for the company grew 6.5% to A$2.99 billion year-over-year.
These results were boosted by Treasury Wine’s luxury wine portfolio, which now accounts for 55% of revenues, as well as the re-establishment of Penfolds and other products in China, after Beijing lifted punitive tariffs.
Treasury Wines also announced a final dividend of A$0.20, which is higher than the A$0.19 posted at the same time last year.
The winemaker also announced a buyback of up to A$200 million, which is to be completed throughout fiscal 2026.
At the time of writing, Treasury Wine Estates (ASX: TWE) stock was trading 0.63% higher than the previous close at A$7.63. Its market capitalisation was A$6.19 billion.
