Treasury Wine Estates (TWE), the Australian winemaker, has reported net profits after tax up 55% to AU$269.1m for the year ending June 30, 2017.
Net profits were up on the previous year which was also a strong year at AU$179.5m for the 12 months to June 30, 2016.
TWE said the acquisition of Diageo Wine, which saw it purchase wines such as UK brand Percy Fox, including Blossom Hill, continued to deliver profitability upside.
The winemaker revealed that that Australia & New Zealand (ANZ) reported 24% earnings before tax (EBITS) growth to $111.1m and an EBITS margin of 18.8%, driven by above-category volume growth.
Europe reported 0.6% EBITS growth to $48m and an EBITS margin of 13.6%. However, excluding the impact of adverse foreign exchange rate movements, EBITS increased 46%.
The Americas also reported strong results with 44% EBITS growth to $189m and an EBITS margin of 17.8%. This was driven by the integration of Diageo Wine. Asia also saw positive growth as it reported 47% EBITS growth to $150.1m and an EBITS margin of 38.1%.
TWE said the outlook continued to be positive, with the company delivering against its strategy of transitioning from an agricultural to a 'brand-led, high performance' organisation.
TWE’s chief executive officer, Michael Clarke said he was delighted by the results.
“This result was delivered despite continuing to sell through short vintages of Luxury and Masstige wine, and highlights our continued focus on strategic customer partnerships in all our markets, significantly enhanced sales and marketing execution, and optimisation of our cost base,” Clarke said.
“Delivering revenue growth and margin accretion over time remains a priority, supported by our investments in building closer, more efficient and strategic partnerships with customers and by positioning TWE as the wine supplier of choice across multiple brand portfolios and countries-of-origin”.
(Photo shows TWE CEO Michael Clarke)