Australia’s biggest wine group, Treasury Wine Estates (TWE) is looking at a sharp, a 21% hit to full-year earnings after COVID-19 ravaged its operations across the globe, on top of problems in the US and Chinese markets.
Desperate times call for desperate measures and so it was not that big a surprise that embattled wine giant Treasury Wine Estates (TWE) says it is thinking of de-merging its high-quality Penfolds wine business form the rest of the company.
Exports data in the December quarter from Wine Australia shows premium wine improved. Overall, quarterly wine export value to China and Hong Kong was up 8%. Growth was also strong in wines where Treasury Wine Estates is more prominent.
Morgans assesses the investor briefing showcased the quality of management as well as the world-class viticultural assets. Vintages 2016-2019 are expected to underpin strong earnings growth out to FY22.