Treasury Wine Estates delivers strong first half results
Treasury Wine Estates (TWE) has announced its first-half 2019 results with net sales increasing by "the largest organic growth rate in the company’s history".
Pre-tax profits grew 19% with growth across all regions, including a 10% rise across Europe, driven by “masstige-led premiumisation” as well as continued focus on “the strengthening of strategic customer partnerships”.
Michelle Brampton, who has recently been appointed as managing director for Europe, said that in the UK she is focused on developing the luxury and fine wine arm of the business, which comprises brands such as Penfolds, Wynns and Beringer Vineyards.
Brampton told DRN that a number of premium brands in the portfolio are all flying, including Wolf Blass, Lindemans and 19 Crimes, with sales of Wolf Blass up 7%, and 19 Crimes seeing growth of more than 200% over the last 12 months, aided by interest in its augmented reality living wine label.
Globally, TWE said it has started 2019 with increased availability of luxury wine and it has a strong pipeline of innovation and NPD ahead, which will strengthen partnerships across all regions and “brand portfolio initiatives that have the potential to be incremental to the Company’s existing 5-year expectations”.
It added: “TWE is well placed to capitalise on its current momentum and deliver sustainable growth through the second half of 2019 and beyond.”
Chief executive, Michael Clarke, said: “I am very proud to see the foundation established in the previous years continuing to deliver sustainable growth, as shown by yet another strong set of financial results for the Group. Like in previous years, we have delivered on expectations while continuing to implement significant changes to the business and investing for future growth.”
He added: “The results presented today demonstrate not only the strength of our premiumisation strategy and global balance, but in particular they highlight the strength of our competitively advantaged regional business models. We are confident we have the brands, the people and the business models in place to maintain the momentum of this half and continue delivering sustainable growth for shareholders.”