Penfolds, Treasury Wine Estates
Penfolds Grange has been in the top tier of Australia's Langton's Classification since the ranking was born in 1990.
(Image credit: Penfolds)

The fortunes of Penfolds and Beringer owner Treasury Wine Estates continued to improve with a doubling of the company’s net profits in the year to the end of June.

Treasury’s profits reached A$179.4m for the year.

Sales in the year ending 30 June were up by just over 20% to A$2.23bn, while volumes rose 12% to 33.6m nine-litre cases.

Treasury said sales in Asia and Australia had risen strongly in volume terms. But this was offset by the company’s decision to leave ‘unsustainable’ lower-priced business in the UK and the US.

Barring the contribution from the newly-acquired Diageo brands, Treasury’s sales were up 9.4%.

That still signalled a continued recovery in the company’s fortunes from the nadir of 2013 and 2014, when it was hit by a series of charges. It was forced to destroy or discount millions of bottles of excess wine in the US.

That prompted a series of private equity bids for the business. Treasury’s share price has since surged and was up 11% following its latest results release.

‘Our results demonstrate that momentum across our business is accelerating,’ said Treasury CEO Michael Clarke. ‘TWE is now delivering consistent earnings growth.’

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Richard Woodard
Richard Woodard
Decanter Magazine, Wine & Spirits Writer

Richard Woodard is a freelance wine and spirits writer based in the UK. Aside from Decanter, he writes for several wine trade and media outlets including Imbibe, The Drinks Business, Harpers and Drinks International.

Since 2015 he has been the magazine editor of Scotchwhisky.com. He has formerly worked as a wine news reporter at Imbibe and a feature writer for Halycon Magazine.