Treasury Wine Estates (ASX:TWE) has kicked off FY25 with impressive first-quarter results, highlighted by double-digit growth in net sales revenue (NSR). The company’s luxury-focused strategy continues to pay dividends, with strong performances across its key brands, particularly Penfolds and its newly acquired DAOU Vineyards. TWE reported that the Penfolds brand maintained solid momentum in both Asia and Australia, aligning with expectations during the key Mid-Autumn Festival period in China.
CEO Tim Ford emphasised the impact of the luxury portfolio: “Our focus on the luxury segment has driven exceptional results. Penfolds, alongside Treasury Americas, has delivered outstanding growth, with customer re-orders and depletions of our Bins & Icons portfolio tracking well.” The company remains on track to achieve low double-digit EBITS growth for Penfolds in FY25.
Key milestones during the quarter included the successful integration of DAOU Vineyards into the Treasury Americas division, further strengthening the company's US footprint. The acquisition, completed in 2024 for US$900 million, has already contributed to a 22% rise in NSR and a 13% boost in earnings before interest and taxes (EBITS) for the Treasury Americas unit.
However, not all areas showed positive growth. Treasury Premium Brands experienced a 6% decline in NSR, primarily due to weaker demand in the commercial wine segment. The company responded by announcing plans to divest its commercial brands, including Wolf Blass and Lindeman’s, as part of a broader effort to streamline its portfolio and focus on premium and luxury offerings.
Looking forward, TWE reaffirmed its guidance for FY25 EBITS, targeting $780-810 million.
