Treasury Wine Estates reports a “robust” growth in volume, up 3.1% to 15.45 million cases, driven by the acquisition of Diageo Wine and underlying portfolio growth.
Net sales revenue rose 10%, the company said, with EBITS up 51%, reflecting volume growth, portfolio premiumization and supply chain said.
It added the fundamentals of the U.S. bottled wine market remain attract, but noted a “moderation” of bottle wine volume and value growth in the second half of fiscal 2017, ended June 30, to 0.2% and 1.6%.
For the global company overall, TWE said its net profit after tax globally rose 55% as volume rose 8.5% and sales rose 7.8%. “I am delighted to report a strong F17 result, highlighted by robust earnings growth across every region and accelerated EBITS margin and ROCE accretion,” said Michael Clarke, ceo. “This result was delivered despite continuing to sell through short vintages of Luxury and Masstige wine, and highlights our continued focus on strategic customer partnerships in all our markets, significantly enhanced sales and marketing execution, and optimization of our cost base”.