Treasury Wine Estates reports A$1.08 billion loss despite beating EBITS guidance

Treasury Wine Estates reported a statutory net loss of approximately A$1.08 billion for the fiscal year ending June 30, 2026. The loss was largely driven by non-cash write-downs, including a A$558.4 million charge related to a reduction in US vintage production.

Despite the net loss and the omission of a dividend, the company’s EBITS reached A$492.3 million, exceeding management’s guidance range of A$480 million to A$490 million. This performance was heavily supported by the Penfolds brand, which contributed A$404.3 million in earnings with a 40.5% margin.

Net sales revenue declined by 12.8% to A$2.56 billion as the company intentionally reduced shipments. However, inventory levels are decreasing; in China, customer inventory cover was reduced by approximately 0.2 million cases due to strong depletion performance. In the Americas, shipments outside of California grew by 4.2%.