All regions contributed to EBITS growth and margin accretion, the company said. ‘Fixed’ regions, Asia, Europe and Australia-New Zealand are outperforming expectations.
Americas reported 8% EBITS growth to $100.4m and an EBITS margin of 19.9% (up 3.7ppts), supported by underlying premiumization, Diageo Wine synergies and cost optimization ahead of route-to-market changes being made in the US. The EBITS result includes an adverse one-off impact of $10m from reduced shipments as part of the transition process associated with these route-to-market changes that result in TWE selling direct to key retail partners in California and Washington; as well as an increased allocation of US sourced Luxury volume to Asia.