When China doubled the tariff on Australian wine, it effectively closed that market to Australian producers. For Treasury Wine Estates, that move has proven to hurt just a bit, with reported EBITS down 7%. But excluding sales to Mainland China, EBITS is up 28%, driven by global distribution growth for Penfolds and growth in TWE’s other Luxury and Premium portfolio brands.
Net sales revenue declined 10.1%, reflecting the divestiture of the U.S. Commercial portfolio and significant decline in shipments to Mainland China, partially offset by growth in the Premium portfolio. Net sales revenue per case was up 16%.
The Penfolds division reported a 19% decline in EBITS, which shipment to Mainland China having been slashed, but partially offset by strong growth across global markets. Penfolds growth was particularly strong in Asian markets outside of Mainland China, where NSR grew 119%, supported by strong depletions trends. Increasing distribution in Asia, ANZ, Europe and the United States was a key execution highlight in the first half of 2022.
Treasury Americas reported a 19% increase in EBITS. The TWE priority portfolio continued its strong momentum, delivering 18.8% NSR growth, led by Luxury portfolio performance in the on–premise and DTC channels where progressive reopening trends continued. In 1H22, Treasury Americas substantially completed its significant asset and portfolio optimization program with the divestment of Provenance, Chateau St Jean and surplus supply chain assets, in addition to the acquisition of Frank Family Vineyard.
Treasury Premium Brands reported a 19% increase in EBITS. Treasury Premium Brands continued its focus on innovation led portfolio growth, with the successful launch of the Wolf Blass Zero alcohol range and new
multi–country of origin offerings for Rawson’s Retreat and Blossom Hill key execution highlights.