Treasury Wine Estates (TWE) has announced its 2025 half-year results, highlighting significant growth driven by the continued success of its luxury wine portfolio.
TWE’s strategic transformation into a luxury-led business has yielded impressive results, with key contributions from its flagship brand, Penfolds, and the ongoing integration of DAOU and Treasury Americas.
A Strong Focus on Luxury Wine
TWE’s CEO, Tim Ford, shared his satisfaction with the company’s performance, emphasizing how the focus on luxury wines has shaped the business’s trajectory. “Our performance highlights the benefit of our significant multi-year transformation to establish TWE as a Luxury-led business,” he said. The luxury portfolio, particularly Penfolds, delivered an outstanding result, while the integration of DAOU and Treasury Americas has positioned TWE as the leading supplier of luxury wines in the U.S. market.
Ford also pointed to the successful re-establishment of the Penfolds Australian country-of-origin portfolio in China. This move has been met with positive consumer and customer sentiment, with strong performance signals indicating a robust future for Penfolds in the region.
Financial Growth and Luxury Portfolio Highlights
TWE’s results reflect the impact of this transformation:
- NPAT pre-material items and SGARA increased by 31.5% to $239.6 million.
- EBITS grew by 35.1% to $391.4 million, driven by the strong performance of the luxury portfolio.
- EBITS margin grew by 2.8 percentage points, reaching 25.3%.
- Group Luxury NSR surged by 52.0%, representing 56.0% of the Group’s total NSR.
- The company declared an interim dividend of 20.0 cents per share, an increase of 17.6% from the previous period.
TWE’s focus on premiumization is evident in these numbers, with the luxury portfolio now accounting for more than half of the company’s net sales revenue.
A Look Ahead: Growth and Strategic Transformation
Looking to the future, TWE is poised for further growth in the luxury segment, with a clear roadmap for the next few years. The company remains confident about the long-term growth potential of Penfolds in China and other global markets. The ongoing integration of DAOU into Treasury Americas continues to exceed expectations, strengthening the company’s position in the U.S. luxury wine market.
Additionally, TWE is preparing for a transition to a Global Premium division in fiscal year 2026. The appointment of Angus Lilley as Managing Director of the new division will be instrumental in ensuring that TWE’s global premium strategy aligns with its luxury-led focus.
Despite some challenges in the lower end of the market, particularly for Treasury Premium Brands, TWE is optimistic that the strategic shift to a global premium division will boost performance across the portfolio. The company has adjusted its EBITS forecast for fiscal year 2025, now expecting around $780 million, at the lower end of the previously guided range.
Boldly Cultivating the Future
Ford concluded the announcement by reaffirming the company’s bold vision: “Together, by Boldly Cultivating, we’ll make a lasting impact on our teams, our communities, our customers and consumers, and our investors and partners.” TWE is focused on becoming the world’s most desirable luxury wine company, leveraging the strength of its portfolio and its transformation to drive continued growth.
Summary and Outlook
- Luxury-led focus continues to drive strong performance in 1H25, with NSR, EBITS, and EBITS margin growth.
- Penfolds in China is performing as expected, with a positive outlook for long-term growth in Asia.
- Treasury Americas’ integration with DAOU is progressing well, with synergies now projected to reach US$35 million.
- Treasury Premium Brands remains challenged, but the upcoming transition to a Global Premium division should improve performance.
TWE’s luxury-led strategy is clearly paying off, positioning the company for continued growth in the luxury wine market in 2025 and beyond.
Source: TWE