Tag: TWE

More than $1.6 billion was wiped off the value of Treasury Wine Estates (TWE) shares yesterday after CEO, Michael Clarke sprang a major surprise in revealing he will retire from the top job at Australia’s biggest wine company next year.

Treasury Wine Estates CEO Michael Clarke has again held out the possibility of splitting the company into two parts – one to handle the low margin wines and the other its premium products, such as the Penfolds reds range.

Despite the attack from a short-selling group during the year, Treasury Wine Estates has reported a solid rise in earnings and dividend for the year to June.

Australia’s biggest wine group, Treasury Wine Estates (TWE) is rewarding shareholders with a 20% higher dividend after revealing a 17% rise in interim net profit yesterday.

Yet another solid year for Australia’s biggest wine company Treasury Wine Estates which has reported higher earnings, higher profits and a forecast of more ahead for 2018-19.

So will Treasury Wine Estates (TWE) be singled out by investors after China revealed details of its retaliatory duties on US food imports including pork, fruit, nuts and wine. The tariffs of up to 25% are a response to the Trump administration’s new tariffs on steel and aluminium imports?

Treasury Wine Estates has lifted interim dividend two cents to 15 cents a share after reporting a 37% surge in half year earnings to $187.2 million.

Treasury Wine Estates shares eased 1.4% to $14 yesterday after the company revealed “limited damage” to its northern Californian wine businesses from the terrible fires that have killed at least 13 people and caused tens of billions of dollars in property damage.

Finally Australia has a wine company that is showing it can deliver on the promises of being good brand manager, wine grower and maker, exporter and can take Australian wine to the world and make money.

Treasury Wine Estates jumped nearly 5% yesterday after it reaffirmed earnings guidance for the second half of the 2017 financial year and said growth prospects in the increasingly lucrative China market remained intact.

As expected, Treasury Wine Estates (TWE) more than doubled its after tax profit for the six months to December to $136.2 million as it rode stronger demand for its fine wines, especially in China and reaped the benefits of the Diageo wine purchase and the benefits of an aggressive cost cutting and restructuring program.

While shareholders in Treasury Wine Estates (TWE), our born again wine giant, got a bullish update at yesterday’s annual meeting in Adelaide with news of faster than expected gains on cost cuts and product rationalisation, it was the company’s exposure to the US economy that saw the shares surge more than 8% off the back of the shock US election result.

Like Webjet and a couple of other companies, investors have known that Treasury Wine Estates (TWE) would be reporting a very strong profit for the year to June 30, but even after doing that, the market found something more to enthuse about and bid the shares up more than 11% in yesterday’s weak trading.

Treasury Wine Estates (TWE) has confirmed the accuracy of the 72% surge in its share price in the past year with a 72% lift in first half earnings to $146.8 million, and a one third boost to interim dividend.

A big thumbs up from investors yesterday after Treasury Wine Estates (TWE) shares were re-listed following its big capital raising to fund the expansion of its US wine operations with the purchase of assets from global grog group, Diageo.

Treasury Wine Estates (TWE) is expanding its already substantial US business by acquiring most of the wine operations of beverages giant Diageo for $754 million, and will pay for the purchase with a 2-for-15 rights issue to raise $486 million.

Treasury Wine Estates (TWE) shares touched a record high on Tuesday in the wake of an update to its cost cutting program, which really revealed the wine giant is enjoying solid trading conditions.

Treasury Wine Estates (TWE) has provided more reasons why it was right to reject the opportunistic moves by private equity groups to try and grab control of the company on the cheap.

Treasury Wine Estates (TWE) yesterday revealed a further revamp of its winemaking and distribution facilities across Australia and the US.

Naturally shares in Treasury Wine Estates (TWE) fell heavily yesterday after it ended talks with two private equity groups on a possible buyout at $5.20 a share.

Yesterday’s full year results from Treasury Wine Estates (TWE) were interesting in that they showed the company’s financial position as at June 30 last, but as the basis for wondering about what lies ahead, they were useless because of one and possibly two buyout offers priced at the moment at $5.20 a share.

Now the suffering shareholders in Treasury Wine Estates (TWE) (those courageous enough to have hung on through the past two years of bad news) are in a sweet spot – a rival bid emerged yesterday to that from US private equity groups, KKR and Rhone Capital.

A cautious rather than enthusiastic reception from the market to the news of an extra 50c a share added to the attempted bear hug takeover offer for Treasury Wine Estates (TWE) from US buyout group, KKR and its partner, another private equity group.

A bigger write down and more rumours of possible takeover interest, and it ended up being one of the better days recently for embattled grog group, Treasury Wine Estates (TWE) (the old Southcorp).

Shares in Treasury Wine Estates (TWE) have had their best day for more than a year after the company revealed it had rejected a bear hug offer from US buyout group KKR at $4.70 a share.

More of the same harsh medicine for struggling wine giant, Treasury Wine Estates (TWE) from the new CEO Michael Clarke.

Like a stone – that’s the best way to describe yesterday’s fall in the price of Treasury Wine Estates (TWE) shares after the company produced the widely expected downgrade – the second in around nine months and perhaps the biggest shock of all for what caused it – an attempt to reverse the discounting of the company’s best wines that had gone on for years.

And is there another pounding coming for struggling wine group Treasury Wine Estates (TWE)?

Last Friday it was all love and kisses at Treasury Wine Estates (TWE), with the company releasing its notice of meeting for the AGM to be held on October 23 in Adelaide, which included a recommendation for the then CEO David Dearie to be issued performance rights as part of an incentive plan.

Unlike the mostly benign reaction to the weaker Chinese economic data yesterday, wine producer Treasury Wine Estates (TWE) again reminded us that the market doesn’t like big, hard to explain problems emerging in a major company, especially when it is close to a reporting period and in a major market for the company.