Australia's Treasury Wine Estates (TWE.AX) reported a 41.5% drop in full-year underlying profit on Thursday, weighed by weaker earnings from its Americas division.
The Americas business has been a drag on the winemaker's performance as soft U.S. demand and distribution disruptions left it with excess inventory, prompting a strategic review and restructuring of the division.
Earnings before interest, tax, self-generating and regenerating assets and material items (EBITS) from the Americas division fell 61.4% to A$90.2 million ($63.7 million) in fiscal 2026 from A$233.4 million a year earlier, while net sales revenue declined 21.2% to A$575 million.
The Penfolds maker reported underlying net profit after tax of A$275.3 million for the year ended June 30, down from A$470.6 million a year earlier but ahead of a Visible Alpha consensus estimate of A$262 million.
The earnings measure excludes material items and volatility from changes in the value of agricultural assets and harvested grapes.
Separately, Treasury Wine booked a A$1.12 billion impairment charge on its U.S. assets and a further A$611.3 million charge related to a strategic review of its Americas business and efforts to rebalance its U.S. supply chain.
($1 = 1.4164 Australian dollars)
