Treasury Wine Estates has preserved its full-year profit despite losing a big chunk of its key China market and amid the global disruption from the coronavirus pandemic.
The owner of brands such as Penfolds, Wolf Blass and Lindemans on Thursday reported net profit for the year to June 30 rose 1.8 per cent to $250 million.
Earnings before interest, tax and the agricultural accounting standard SGARA were nearly flat, easing 0.4 per cent to $510.3 million.
The world's largest listed winemaker posted a 3 per cent drop in full-year revenue to $2.56 billion.
By 1145 AEST, Treasury Wine shares were down 2.1 per cent to $12.42 in a weak Australian market.
The company has faced strong headwinds and largely been shut out of its main market, China after its government last year slapped tariffs of around 200 per cent on all Australian winemakers, including Treasury Wine.
That was manifested in a $77.3 million dive in earnings from mainland China and a 15 per cent drop in overall earnings from Asia to $205.4 million.
"Despite a backdrop of significant external disruption, we have delivered on the priorities we set for ourselves at the start of the year, and therefore we remain very well placed to deliver on the long-term growth ambitions," chief executive Tim Ford said in a statement.
Earnings were largely maintained on the back of strong growth in the mid-range portfolio that includes brands such as Pepperjack, Squealing Pig, Beringer Brothers and Matua, particularly in the Americas, EMEA and ANZ markets.
Consumers in countries like Thailand and Singapore also turned to more expensive wines, helping the company boost sales from its luxury and premium portfolio, offsetting reduced sales at restaurants, pubs and clubs due to lockdowns.
Earnings at the Americas business were up 23 per cent to $168.3 million, while Australasia earnings rose 10 per cent to $142.7 million.
The winemaker meanwhile announced a change in its divisional split from regions to brands. From July 1, Treasury Wine will operate under three new internal divisions - Penfolds, Treasury Premium Brands and Treasury Americas.
The winemaker declared a fully franked final dividend of 13 cents a share, up 62 per cent from a year ago.
TREASURY WINE FY RESULTS
* Total revenue down 3.0pct to $2.56b
* Profit up 1.8pct to $250m
* Fully franked final dividend at 13.0 cents/share vs 8.0 cents year ago.
編輯：Frida Xu
