Treasury Wine Estates, maker of well-known brands like Penfolds, Wolf Blass and Wynns, has more than doubled its first half profit.
Announcing its interim 2017 financial result yesterday, the company said reported Net Profit After Tax (NPAT) for the period was $136.2m and Earnings Per Share (EPS) was 18.5 cents per share.
The good result reflects treasury’s purchase of Diageo assets in the US last year.
“I am delighted to report a strong interim 2017 financial result highlighted by further margin accretion, excellent cash conversion and outstanding EPS growth, despite the higher share base. All regions delivered double digit EBITS growth and importantly, growth was delivered sustainably,” commented TWE’s Chief Executive Officer, Michael Clarke.
The company’s EBITS margin accretion was up 4.3ppts to 17.5% in 1H17 and up 2.5ppts relative to TWE’s F163 EBITS margin of 15.0%, which included 6 months of the Diageo Wine contribution.
The outlook for Treasury remains positive, with the company continuing to deliver against its strategy of transitioning from an agricultural to a brand-led, high performance organisation.
“Today’s result announcement demonstrates that we are executing on all the initiatives we have communicated to the market and importantly, that TWE is continuing to deliver sustainable value to its shareholders,” said Clarke.