Treasury Wine Estates Accelerates US Supply Chain Restructuring to Improve Americas Returns
Treasury Wine Estates Limited (ASX: TWE) has accelerated actions to realign its US supply chain following a strategic review of the Americas business, with the objective of improving medium-term profitability and capital efficiency. The Company plans to reduce North Coast vintage production from 2026, including vineyard fallowing, while also lowering excess inventory and reassessing utilisation across vineyards, wineries and packaging infrastructure. These initiatives are expected to result in an additional AU$558.4 million post-tax material item charge in F26, including asset, inventory and brand impairments. Despite the restructuring impact, underlying trading remains stronger than previously anticipated, with unaudited F26 EBITS before material items expected at AU$492.3 million, exceeding prior guidance of AU$480–490 million. F26 leverage is also expected at 2.8x, better than earlier guidance of 2.9x. Treasury Wine Estates has maintained its expectation for F27 EBITS to be at least equivalent to F26, supported by Penfolds performance and cost benefits from TWE Ascent.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Treasury Wine Estates Accelerates US Supply Chain Restructuring to Improve Americas Returns
Treasury Wine Estates Limited (ASX: TWE) has accelerated actions to realign its US supply chain following a strategic review of the Americas business, with the objective of improving medium-term profitability and capital efficiency. The Company plans to reduce North Coast vintage production from 2026, including vineyard fallowing, while also lowering excess inventory and reassessing utilisation across vineyards, wineries and packaging infrastructure. These initiatives are expected to result in an additional AU$558.4 million post-tax material item charge in F26, including asset, inventory and brand impairments. Despite the restructuring impact, underlying trading remains stronger than previously anticipated, with unaudited F26 EBITS before material items expected at AU$492.3 million, exceeding prior guidance of AU$480–490 million. F26 leverage is also expected at 2.8x, better than earlier guidance of 2.9x. Treasury Wine Estates has maintained its expectation for F27 EBITS to be at least equivalent to F26, supported by Penfolds performance and cost benefits from TWE Ascent.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au