Treasury Wine Estates chief executive Tim Ford says it will take three years to rebuild the company’s business in China despite a surge in sales of its flagship Penfolds brand since authorities in Beijing lifted punishing trade tariffs.

The country’s largest wine producer told investors on Thursday that profits at its Penfolds business were expected to grow about 15 per cent in the 12 months ended June 30. However, the cost of restarting a once-lucrative trade to China would cut into margins – they are expected to fall from 44.5 per cent to 44 per cent – this year.