Treasury Wine Estates (TWE) has announced its FY25 results, which it said delivered topline, bottom line and margin growth during a year where it navigated a number of economic and category headwinds.

Penfolds reported a 13.2% increase in EBITS to $477 million and an EBITS margin of 44.4% (up 2.3ppts).

TWE said the result was driven by strong growth in Bin & Icon portfolio shipments to China as part of the return of the Australian COO portfolio to that market, partially offset by lower shipments to other key markets, as allocations were managed in the period to support China growth.

Strong depletions growth was achieved across a number of markets in Asia, Australia and EMEA. On a constant currency basis, NSR and EBITS increased 6.8% and 13.8% respectively.

Treasury Americas reported a 33.9% increase in EBITS to $308.6 million and an EBITS margin of 26.4% (up 3.4ppts).
The result was driven by Luxury portfolio NSR growth with a full year contribution from DAOU (up 8.2% versus the
pcp2) and continued growth from Frank Family Vineyards (up 3.7%), partly offset by declines across other key Luxury
brands (down 8.4%).

However, the Premium portfolio NSR in Treasury Americas declined 5.5%, driven by 19 Crimes and partly offset by continued strong growth for Matua. Realised synergies from DAOU overhead and supply integration totalled approximately $US12 million in FY25. On a constant currency basis, NSR and EBITS increased 15.1% and 31.9% respectively.

Treasury Premium Brands also reported a 27.6% decrease in EBITS to $55.1 million and an EBITS margin of 7.9% (down 2.4ppts).

TWE said the result reflected NSR declines in the Commercial and Premium portfolios in EMEA and Australia, partly offset by improved CODB from reduced overhead costs following the implementation of operating model changes in 1H25 and the re-alignment of brand investment with divisional volumes.

On a constant currency basis, NSR and EBITS decreased 7.2% and 31.8% respectively.

TWE cancelled the sale of its Wolf Blass, Lindemans, Yellowglen and Blossom Hill brands in February, saying offers from potential buyers had been too low so the company would retain the brands.

TWE CEO Tim Ford said: “Overall, I am pleased with TWE’s fiscal 25 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.

“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 is entering fiscal 26 well positioned to harness the attractive opportunities in the Luxury wine category.”

As announced in May 2025, Ford will leave TWE on 30 September 2025, after a 14-year career with the company and five years as CEO and MD.

Sam Fischer will succeed Ford as CEO and MD effective from 27 October 2025. Fischer has more than 30 years of global experience in alcohol beverages, consumer goods and luxury brands and was most recently at Lion Australia.

TWE noted that approximately $4 million of costs would be recognised in FY26 within the corporate segment with respect to the CEO transition.

These costs include Fischer’s sign-on award, made up of a cash payment and restricted equity, and Ford’s exit entitlements.

Outlook for FY26

TWE said it expects to deliver another year of EBITS growth in FY26, including low to mid double-digit EBITS growth for Penfolds, driven by increased Bin & Icon portfolio availability from 4Q26 and continued positive momentum throughout a number of markets in Asia.

EBITS delivery is expected to be weighted to the second half, approximately 55%, reflecting a similar profile to F24. EBITS margin is expected to be approximately 44%. For FY27, Penfolds continues to target EBITS growth of approximately 15%

In Treasury Americas, the net financial impact from Californian distribution changes remains uncertain. A forced change of distributor in the market contributed to an inventory build-up of 400,000 cases of wine. However at this point in time, TWE expects an adverse impact to operating plan NSR of approximately $50 million as a result of these changes, with the outlook for modest EBITS growth contingent on mitigating the impact of reduced shipments through the exit negotiations with RNDC

Treasury Collective’s top-line decline is expected to moderate in FY26, on the path to stabilisation, with continued growth from the priority brand portfolio expected to partially mitigate continued declines in the Commercial portfolio. The impact to EBITS from its California distribution change is expected to be modest.

“It is a stronger, higher quality business with multiple paths to growth and with a very much luxury led portfolio,” Ford told The Australian. “Around 85% of our earnings now is coming from luxury wines, where it was below 50% five years ago.”

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