Treasury Wine Estates (TWE) has promised to deliver revenue growth from FY28, following its EBITS declining 36.1% in FY26.

The company said its FY26 results reflected the impact of moderated category trends, initiatives to ensure brand and channel health and the cycling of elevated shipments in the prior year.

Penfolds reported a 15.2% decrease in EBITS to $404.3 million during the period, however TWE said demand for the brand remained strong in key markets, with depletions up globally versus the prior corresponding period, led by China +34.7%, Asia ex-China 18.1% and Australia +5.7%.

The Treasury Collective division reported a 47.8% decrease in EBITS to $68 million. Declines were led by the Americas, where performance reflected softer premium segment demand and further declines in 19 Crimes, partly offset by continued growth for Matua. In Australia and Europe, declines were driven by commercial brands, while Squealing Pig and Pepperjack were strong performers locally.

Treasury Americas reported a 61.4% decrease in EBITS to $90.2 million, driven by softer US wine market conditions, disruption from the Californian distribution transition in the first half of FY26 and cycling the excess of shipments over depletions.

TWE CEO Sam Fischer said: “FY26 was a year of decisive action and significant change for Treasury Wine Estates. While our financial performance reflected evolving market conditions and the proactive measures to ensure brand and channel health, we made substantial progress towards reshaping the business for long-term success.

“Penfolds, once again, proved it is a global luxury wine brand that transcends the wine category.

“The growth in depletions globally, led by China was particularly pleasing, reflecting the continued excellence of our execution and strengthening demand power.

“During the year, we took action to rebalance customer inventories in China and the US to protect brand health, whilst significantly advancing our TWE Ascent transformation program to drive clearer accountability, faster decision making,
and an enhanced focus on our highest potential brands.

“We are also making strong early progress in aligning our supply chain to our vision for a simpler TWE, and accelerating initiatives to improve performance in the Americas.

“While there is more to do, we are confident these initiatives will position TWE for improved and sustainable growth over time.”

TWE flags more than $1.3 billion in write-downs

Earlier this week, TWE announced it expected an additional $558.4 million in write-downs in its FY26 results due to issues with its US supply chain. This follows $687 million of write-downs in December 2025.

Measures to address over supply will include pulling out some vineyards in the Napa Valley in California.

As a result of the write-downs, TWE expects topline growth for Penfolds to be offset by the impact of distributor inventory rebalancing in the US, sell through of the remaining RNDC inventory (at nil margin) and declines for non-priority brands,

Tackling China issues

TWE said significant progress has been made to crack down on grey market issues in China that have affected the Penfolds brand.

The company has also focused on rebalancing China customer inventory and restricting shipments that were contributing to parallel import activity and discounting.

Inventory was reduced by approximately 0.2m cases in FY26, due to strong depletions performance in May and June. This represents approximately half of the targeted 0.4m case customer inventory reduction, with rebalancing activity to be
completed in FY27.

Penfolds also imposed a three-month supply embargo on Bin 407 into China last month to clear excess stock.

“We’ve temporarily paused new orders for Penfolds Bin 407 in China until early October as part of our ongoing focus on maintaining healthy channel dynamics and supporting the brand’s long-term value,” said Penfolds managing director Tom King.

“Bin 407 continues to perform well in China and remains in strong demand among consumers.”

Fischer said the company had already seen price stabilisation following the China crackdown, “with some price escalation which is really positive”.