Treasury Wine serves up a 34 per cent jump in net profit
Australia’s biggest wine company Treasury Wine Estates has become the latest large corporate to report hefty net profit growth of 30 per cent or greater.
The wine company’s full year results for fiscal 2018, released before the market opened on Thursday, revealed a 34 per cent jump in net profit after tax to $360.3 million.
Treasury, whose stock price has surged in the last three years or so under the leadership of Michael Clarke, reported a 17 per cent jump in earnings before interest, tax, the accounting standard SGARA and material items (EBITS) to $530.2 million.
We have the wine, the brands, the business models and the organisational talent to propel our company into its next phase of growth.
Michael Clarke, Treasury Wine Estates CEO
“I am delighted to report another stellar financial result for fiscal 2018; a year we have coined a ‘foundation year’ for our company,” Mr Clarke said.
“The momentum in our business, together with the strength of our organisational talent, brand portfolios, operating models and customer partnerships, enabled us to execute transformational changes to our operating model in the US and still deliver strong profit growth,” he said.
Investors welcomed the result, with shares in the company up 0.9 per cent at $18.58 in early trade.
Treasury will pay a final dividend of 17 cents a share, fully franked, on Friday October 5.
In Asia Treasury reported EBITS of $205.2 million, up 37 per cent on the previous year, while EBITS in Europe rose 21 per cent to $49.5 million. But EBITS in Treasury's Americas segment fell two per cent to $193 million.
Mr Clarke said Treasury was poised for an "exciting year" in fiscal 2019.
"We have the wine, the brands, the business models and the organisational talent to propel our company into its next phase of growth that will see TWE become the world’s most celebrated wine company and deliver a 5yr EBITS CAGR (compound annual growth rate) of 25 per cent," he said.
The surge in Treasury's net profit comes after biotechnology giant CSL reported a 29 per cent rise in net profit on Wednesday, and Whitehaven Coal reported a 30 per cent rise in net profit on Tuesday.