Treasury Wine Estates (TWE) has reported an impressive set of results for fiscal year 2025, demonstrating the strength of its luxury wine strategy, the benefits of portfolio diversification, and the resilience of its teams across global markets. Despite operating in an environment marked by ongoing economic uncertainty and headwinds in certain regions, the company remained steadfast in executing its business plans, delivering robust financial outcomes while positioning itself for sustainable long-term growth.
Chief Executive Officer Tim Ford expressed his satisfaction with the year’s performance, noting the progress made in refining the company’s business model, strengthening strategic clarity, and integrating high-performing assets into TWE’s luxury portfolio.
“Overall, I am pleased with TWE’s fiscal 2025 performance. While we continued to face headwinds in a number of markets, we remained laser-focused on executing our business plans, further strengthening the business for long-term growth and achieving strong financial performance, underpinned by Penfolds’ continued momentum and integrating DAOU into our luxury portfolio,” Ford said.
“We also completed transitioning to our new luxury portfolio-led operating model, a structural evolution that enhances our strategic clarity and positions us well for the future.
“I am incredibly proud of the transformation we’ve delivered over the past five years and want to thank our people for their passion, resilience and commitment to delivering on our strategy. I am confident that the team and the business are entering fiscal 2026 well positioned to harness the attractive opportunities in the luxury wine category.”
Key Financial Highlights for FY25
TWE’s results reflect both strong underlying growth and the benefits of recent strategic moves, particularly in the luxury wine segment:
- Statutory Net Profit After Tax (NPAT): $436.9 million, representing a remarkable 341.8% increase compared to the prior corresponding period (pcp). This sharp rise reflects both operational performance improvements and the absence of significant one-off impacts that affected the previous year.
- NPAT Before Material Items and SGARA: $470.6 million, up 15.5% from the pcp, highlighting the solid underlying business performance.
- Earnings Before Interest, Tax and SGARA (EBITS): $770.3 million, up 17.0% year-on-year, driven by strong growth in Penfolds and a full-year contribution from DAOU.
- EBITS Margin: Expanded by 2.2 percentage points to 26.2%, underlining the profitability of the company’s luxury-led strategy.
- Luxury Portfolio Contribution: TWE’s luxury portfolio now accounts for 85% of total Group EBITS, underscoring the strategic focus on premium segments.
- Net Sales Revenue (NSR): Increased 7.2% to $2.9 billion, with luxury wines contributing 55% of the group’s total NSR.
- Dividend: A final dividend of 20.0 cents per share, 70% franked, has been declared. This brings the full-year dividend to 40.0 cents per share, representing an 11.1% increase on the pcp and a payout ratio of 69%.
Driving Growth Through a Luxury Portfolio-Led Model
One of the most significant milestones of the year was the successful completion of TWE’s transition to a luxury portfolio-led operating model. This structural change is more than just a reorganization—it is a strategic evolution that enables the company to focus resources, marketing, and innovation on its highest-value brands and most promising markets.
Under this model, brands like Penfolds, DAOU, and other luxury labels are given heightened strategic attention, supported by premium viticulture practices, targeted global marketing, and a customer experience strategy aimed at deepening engagement with discerning wine consumers.
Penfolds, long regarded as one of the jewels in TWE’s crown, continued its strong momentum through the year, buoyed by both brand heritage and contemporary appeal in global luxury markets. The full-year integration of DAOU, a leading luxury wine brand from California’s Paso Robles region, has further expanded TWE’s premium footprint in the United States and strengthened its appeal among affluent consumers worldwide.
Innovation, Sustainability, and Global Reach
In addition to financial and structural achievements, TWE made strategic investments across its operations to secure future growth. These included:
- Innovation in Grape Growing and Winemaking: The company continued to invest in advanced viticulture techniques and winemaking processes to ensure exceptional quality and consistency in its luxury portfolio.
- Sustainability Initiatives: Efforts to reduce environmental impact, improve resource efficiency, and protect vineyard ecosystems remain central to the long-term vision.
- Customer and Consumer Engagement: TWE deepened relationships with both trade customers and end consumers through experiential marketing, exclusive wine releases, and digital engagement initiatives.
These initiatives are part of TWE’s broader ambition to strengthen its connection with wine lovers globally while maintaining a reputation for excellence and authenticity.
The “Game Plan” and Purpose-Driven Growth
As part of its strategic direction for FY25 and beyond, TWE launched an exciting new Game Plan centered around its purpose—Boldly Cultivating. This unifying vision inspires employees, partners, and stakeholders to help shape not only the future of TWE but also the broader global wine industry.
The Game Plan focuses on four key pillars:
- Brand-Led Growth: Building stronger, more premium brands with global resonance.
- Operational Excellence: Driving efficiency, productivity, and innovation across the supply chain.
- Consumer-Centricity: Anticipating and meeting evolving consumer preferences through innovation and engagement.
- Sustainable Leadership: Setting benchmarks for responsible and ethical wine production.
By combining these pillars, TWE aims to accelerate growth, strengthen market share in premium categories, and position itself as a global leader in luxury wine.
Outlook for Fiscal 2026
Looking ahead, TWE’s leadership is optimistic about the opportunities in the luxury wine category. The company believes that growing global demand for premium and luxury wines, combined with TWE’s world-class brand portfolio and disciplined execution, provides a strong foundation for continued success.
The integration of DAOU will be further leveraged to expand market penetration in North America and beyond, while Penfolds will continue to spearhead growth in established and emerging luxury markets. At the same time, ongoing innovation in both product and experience will help the company capture the attention of younger, affluent consumers entering the premium wine space.
Ford concluded:
“I am confident that the team and the business are entering fiscal 2026 well positioned to harness the attractive opportunities in the luxury wine category. The transformation we have achieved over the past five years has set us on a clear trajectory for sustainable growth, and we will continue to build on this momentum.”
In fiscal 2025, TWE not only delivered strong financial results but also reinforced its commitment to excellence, innovation, and premium quality. With a sharpened strategic focus, a strengthened luxury portfolio, and a dedicated team, the company is well placed to lead the global wine industry into its next chapter.
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