Treasury Wine Estates (TWE) has reported a large financial dip in its latest report, with net sales revenue at A$3,561 (£2,637), a 12.8% decrease compared with the previous year.
Net sales revenue per case also decreased by 3.2%. Likewise, earnings before interest, tax, SGARA and material items (EBITS) were down by 36.1% compared with 2025.
On the reasons for the losses, TWE said that the factors were multiple, including softer US wine market conditions and disruption from the Californian distribution transition, which took place in the first half of 2026.
Treasury Americas reported particularly unfavourable results, with EBITS down by 61.4%. Closely following, Treasury Collective also experienced a 47.8% decrease in EBITS.
TWE said that these declines were also led by the Americas, where performance struggled for brands like 19 Crimes, partly offset by growth from Matua.
Elsewhere, though the brand experienced a 15.2% decrease in EBITS, TWE expressed confidence in the Penfolds brands.
It said that Penfolds reported strong gains in China, where depletions were up 34.7%. Excluding China, the rest of Asia likewise reported gains of 18.1%. Meanwhile, Australia was boosted by 5.7%.
“In China, depletions reflect strong consumer demand,” the company commented, noting especially strong performance in the fourth quarter of 2026.
In response to the results, TWE has announced a strategic and operational review of its Americas business, with a focus on improving shareholder returns.
TWE CEO, Sam Fischer, said: “F26 was a year of decisive action and significant change for Treasury Wine Estates. While our financial performance reflected evolving market conditions and the proactive measures to ensure brand and channel health, we made substantial progress towards reshaping the business for long-term success.
“Penfolds, once again, proved it is a global luxury wine brand that transcends the wine category.
“The growth in depletions globally, led by China was particularly pleasing, reflecting the continued excellence of our execution and strengthening demand power.
“During the year, we took action to rebalance customer inventories in China and the US to protect brand health, whilst significantly advancing our TWE Ascent transformation program to drive clearer accountability, faster decision making and an enhanced focus on our highest potential brands.”
