Treasury Wine Estates more than doubles full-year profit

Treasury Wine has continued its turnaround, more than doubling full-year profit amid growth in all regions.

Australian luxury wine brand Penfolds.

Treasury Wine Estates has continued its turnaround, posting a surge in full-year profit on the back of growth in earnings across all the regions it serves.

Profit attributable to members more than doubled to $179.4 million in the year to June 30, compared with $77.6m in the previous year.

The winemaker (TWE) posted earnings growth across Australia and New Zealand, Asia, Europe and the Americas, a feat it has managed only twice since splitting from Foster’s in 2011.

The owner of Penfolds and Wolf Blass attributed the improvement to volume growth and better price realisation in Australia and New Zealand, as well as increasing consumer demand for imported wine in Asia.

Treasury Wine also noted a favourable exchange rate in the Americas, a region that has long proved difficult for the company that destroyed $35m of unwanted and spoiled product in 2013.

The results also follow the acquisition of Diageo’s US wine business on January 1 this year, which added a range of California-based luxury and “masstige” wines to its portfolio, although Treasury said the deal was earnings per share neutral for its first six months.

“Momentum across our business is accelerating,” chief executive Michael Clarke said.

Revenue increased by 18.9 per cent to $2.34 billion in fiscal 2016, from $1.97bn in the prior year.

Treasury Wine will pay a final dividend of 12c per share, unfranked, on October 7 to shareholders who are on the register on September 1.