Treasury Wine Estates suspends interim dividend after US writedown triggers US$460M loss
Treasury Wine Estates posts its first half-year loss since 2011 amid weak US and China demand pressures.
AUSTRALIA – Treasury Wine Estates has suspended its interim dividend after recording a substantial writedown on its US business, resulting in a significant statutory net loss for the first half of the financial year.
The Australian winemaker has been under pressure from weakening demand in both China and the United States, as consumers shift away from alcohol while facing rising living costs.
The group has also been affected by distribution challenges in California, a key US market. Treasury’s shares more than halved in value during 2025.
On a statutory basis, the company reported a loss of A$649.4 million (US$460 million) for the half-year ended December, after booking an impairment charge of A$770.5 million (US$545.31M) on its US assets.
The writedown was larger than previously flagged late last year and marked the company’s first half-year loss since it was demerged from the Foster’s Group in 2011.
First-half earnings before interest, tax, self-generating and regenerating assets (EBITS) fell 40.3% year-on-year to A$236.4 million (US$167.25M). Treasury said it had guided the market to expect EBITS in the range of A$225 million (US$159.16M) to A$235 million (US$166.26M).
Despite the result coming in slightly above guidance, the company cited “adverse category trends” in both the US and China as key drivers of the earnings decline. It also pointed to the impact of parallel imports in China and the fact it was lapping inventory build-ups following the removal of Chinese tariffs on Australian wine.
Net sales revenue declined 16% to just under A$1.3 billion (US$91.9.59m), or 16.6% on a constant-currency basis.
Chief executive Sam Fischer said: “Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth.”
“Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term,” he added.
In December, Fischer announced a multi-year transformation programme, known as TWE Ascent, which includes portfolio reviews and cost reductions.
He said the initiative is “a disciplined, multi-year transformation programme designed to sharpen our portfolio, simplify the organisation and optimise our cost base.”
Fischer added: “Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers.”
The company’s Treasury Americas division recorded a 28.4% fall in revenue to A$283 million (US$200.29M), reflecting softer US market conditions and distribution disruptions in California.
Last week, Treasury said it had settled a dispute with Republic National Distributing Company over its exit from California.
Treasury’s Penfolds division, its largest by sales, reported a 10.1% decline in first-half revenue to A$501.3 million.
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