The company announced today it has scrapped its interim dividend for FY26 after recording the massive loss in a tough international wine market.
The owner of the iconic Penfolds Wines, Treasury Wine Estates (TWE), has copped an almost $650 million loss.
The Australian company announced today it has scrapped its interim dividend for FY26 after recording a $694.4 million net profit after tax (NPAT) loss as it continues to cut costs in a tough international wine market.
Chief executive Sam Fischer, who has only been in the role since October, said he was confident the company was making progress in strengthening the business and making hard decisions to ensure its longevity.
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"Today's results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth," Fischer said in the announcement to the ASX.
"Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term.
Treasury Wines Estates portfolio includes popular labels DAOU, Stags' Leap, Pepperjack, Squealing Pig, 19 Crimes and Matua.
Critically, the company suffered $751 million in impairments in its American wine business.
Profit in the Americas was down almost 64 per cent.
However, Fisher said profits in the second half were expected to improve with the Californian market expected to pick up.
Profits in the Penfolds division alone fell almost 20 per cent, although the company insists the brand remains strong.
"Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers, reinforcing confidence in the strength of our portfolio and our ability to deliver improved performance as we execute the transformation of the business," Fischer said.
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