TWE Reports 17% EBITS Growth and $436.9m NPAT on Luxury Wine Strength
Treasury Wine Estates reported a robust FY25 with a 17% rise in earnings driven by Penfolds and DAOU, alongside a strategic shift to a luxury-focused operating model and a $200 million share buyback plan.
- Statutory NPAT soared 342% to $436.9 million
- EBITS grew 17% to $770.3 million, led by Penfolds and DAOU
- New divisional model prioritizes Luxury wine portfolio
- On-market share buyback of up to $200 million announced
- Uncertainty remains over California distributor transition impact
Strong Financial Performance
Treasury Wine Estates (TWE) delivered a standout full year 2025 performance, with statutory net profit after tax (NPAT) surging 341.8% to $436.9 million. Excluding material items and agricultural fair value adjustments, NPAT rose a solid 15.5%, reflecting operational strength. Earnings before interest, tax, SGARA, and material items (EBITS) climbed 17% to $770.3 million, underpinned by robust growth in the iconic Penfolds brand and the full-year contribution from the DAOU acquisition.
Penfolds, TWE’s flagship luxury wine brand, posted a 13.2% increase in EBITS to $477 million, buoyed by a successful re-entry into the Chinese market and strong momentum across key Asian markets. Meanwhile, Treasury Americas, which includes DAOU and other luxury labels, saw a 33.9% EBITS increase, driven by DAOU’s integration and synergy realisation.
Strategic Shift to Luxury and Operational Changes
Effective July 1, 2025, TWE transitioned to a new divisional operating model that sharpens its focus on luxury wines. This restructure separates the luxury-focused Penfolds and Treasury Americas divisions from the newly formed Treasury Collective division, which consolidates premium and commercial brands. The move aims to deliver consistent growth in luxury segments while stabilising premium brand performance.
The company also announced a $200 million on-market share buyback to be executed progressively through fiscal 2026, signaling confidence in its capital management and future prospects.
Challenges and Outlook
Despite the strong results, TWE faces uncertainty from a distributor transition in California, where Republic National Distributing Company (RNDC) ceased operations. TWE appointed Breakthru Beverage Group as its exclusive distributor in California starting September 2025, but anticipates an adverse impact of approximately $50 million on Treasury Americas’ net sales revenue in fiscal 2026. The company’s outlook for modest EBITS growth in Treasury Americas depends on mitigating shipment reductions during this transition.
Looking ahead, TWE expects another year of EBITS growth in fiscal 2026, led by low to mid double-digit growth from Penfolds, supported by increased availability of its Bin & Icon portfolio and sustained momentum in Asian markets. Treasury Collective’s top-line decline is expected to moderate, moving towards stabilisation.
Leadership Transition and Supply Highlights
CEO Tim Ford will retire in September 2025 after a 14-year tenure, with Sam Fischer set to take the helm in October. Fischer brings over 30 years of global experience in luxury brands and consumer goods, positioning TWE for its next growth phase.
On the supply side, the 2025 Australian vintage was a highlight, delivering strong volumes and quality, particularly in luxury red varietals. New Zealand also recorded a record harvest, supporting TWE’s growth ambitions in key Sauvignon Blanc and Pinot Noir regions.
Bottom Line?
TWE’s luxury-led strategy and acquisition integration set the stage for growth, but the California distributor shift poses a key risk to watch.
Questions in the middle?
- How will the California distributor transition ultimately impact Treasury Americas’ profitability?
- What strategic initiatives will new CEO Sam Fischer prioritize to sustain luxury portfolio momentum?
- Can Treasury Collective reverse its premium and commercial segment declines in the near term?
