By Digifin Pty Ltd · About this coverage
Key Points
- First-quarter F27 trading in line with operating plan across all regions
- Leverage reduced to 2.7x in the quarter, driven by operating cash flow
- Approximately $50m of divestment proceeds confirmed, including Seppelt and Rosemount
- F27 EBITS expected to be at least equivalent to F26, weighted approx. 55% to 2H27
- Leverage expected to return below 2.0x by the end of F28; dividend remains suspended
About Treasury Wine Estates (ASX:TWE)
Treasury Wine Estates Ltd is an ASX-listed wine producer headquartered in Melbourne. It owns and operates vineyards and wineries and sources grapes from third-party growers, producing and selling wine across Australia, the Americas, Asia and Europe. Its brands include Penfolds, Beringer and Wynns Coonawarra Estate.
Treasury Wine Estates (ASX:TWE) used its AGM to report that first-quarter F27 trading was in line with its operating plan across all regions and to reiterate F27 earnings and leverage guidance.
The company said leverage reduced to 2.7x in the quarter, driven by operating cash flow, against Net Debt / EBITDAS of 2.8x for F26. Penfolds depletions growth in China was slightly ahead of plan, US depletions for power brands and regional heroes strengthened, and the US luxury portfolio has recorded three consecutive quarters of depletions growth. Customer inventory cover reduced in China and the US. TWE has divested brands and assets including Seppelt, a number of vineyards and Rosemount, with approximately $50m of proceeds confirmed to date. Initiatives to deliver $40m of benefit in F27 from the $100m p.a. cost reduction have been actioned, with the full amount to be realised by F29. For F26, the company reported a Statutory Net Loss after Tax of $1.1b, driven by the non-cash impairment of US assets, and NPAT before material items of $275.3m. TWE expects F27 EBITS to be at least equivalent to F26, weighted to 2H27 (approx. 55%), and leverage to return below 2.0x by the end of F28.
The dividend remains suspended, with the Board to consider resuming it as leverage moves towards target. The update gives no first-quarter sales or earnings figures, the leverage outlook excludes divestment benefits, and findings from the US strategic and operational review are still to come.
Source: Treasury Wine Estates Limited (ASX:TWE), 15 October 2026. Summary content supplied by Digifin Pty Ltd.
News summary only, not financial advice. It does not consider your objectives, financial situation or needs.