By Mike Cherney
SYDNEY–Australian vintner Treasury Wine Estates Ltd. said annual net profit rose nearly 2% and it increased its dividend following a strong performance in the Americas and Australia-New Zealand regions.
The vintner said net profit in the 2021 fiscal year, which ended in June, was 250 million Australian dollars (US$181 million). Earnings before interest, tax and other items, or Ebits, fell 0.4% to A$510 million and net sales revenue fell 3% to nearly A$2.6 billion, though both figures rose on a constant currency basis.
Treasury declared a final dividend of 13 Australian cents per share, a 62% increase on last year’s final dividend, bringing the full-year payout to 28 cents per share.
Treasury said Ebits in the Americas rose 23% and rose 10% in Australia-New Zealand. However, it fell 6% in the Europe and the Middle East and 15% in Asia, reflecting the implementation of import duties on Australian wine in China following a diplomatic spat between the two nations.
Looking ahead, Treasury said it had a positive outlook for the 2022 fiscal year across key markets outside of mainland China. But it added that the short-term impact of the Covid-19 pandemic was uncertain.
The company said that its financial objective is to deliver sustainable top-line growth and high single digit average earnings growth over the long-term.
Treasury recently transitioned to a new operating model under three brand-led portfolio divisions — Penfolds, Treasury Premium Brands and Treasury Americas — which it expects to maximize the benefits of a separate focus across its various brands. Its business in the U.S. has also undergone fundamental changes to its asset base, strategy and team, the company added.
Write to Mike Cherney at mike.cherney@wsj.com
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