Treasury Wine Estates Strengthens Premium Brands and Provides F23 Outlook

Treasury Wine Estates Limited (ASX: TWE) has revealed its plans to strengthen the operating model and reduce costs for its Treasury Premium Brands division as part of its premiumisation strategy. The company aims to reshape and enhance its portfolio by focusing on growing its priority Premium and Luxury brands across global markets. This strategy has already shown positive results, with the contribution of Premium and Luxury brands increasing to over 60% of division net sales revenue (NSR), leading to growth in NSR per case and EBITS margin.

Regarding performance outlook for F23, TWE expects a decline in group NSR by approximately 2-3% compared to the previous year, with growth for Penfolds offsetting declines in Treasury Americas and Treasury Premium Brands. The company forecasts EBITS growth of 11-13% and a group EBITS margin of approximately 23.5%.

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