Treasury Wine Estates has reported a massive loss in its first half and suspended dividend payments after a A$770.5m writedown to assets in the US.
The group attributed the non-cash hit in the Americas region to a continued moderation of US wine category trends and the application of more conservative long-term growth assumptions.
It led to a net loss of A$649.4m in the six months to 31 December 2025, down 400% on last year.
The Penfolds owner has also struggled with slowing demand in the Chinese market, announcing reduction of customer inventory in the country in December.
Revenues at Treasury fell 16% year on year to A$1.3bn, despite demand for the Penfolds brand remaining strong.
Underlying profits came in above the forecasted guidance of A$225m-$235m at A$236.4m, which represented a 39.4% decline on last year.
Treasury said retaining the strength of its capital structure was a priority as it suspended the payment of its interim dividend. The group said it was a temporary measure to prioritise the preservation of capital and reduce leverage.
Treasury added its ‘Ascent’ transformation plan, targeting $100m of cost savings a year, was progressing well.
“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,” CEO Sam Fischer said.
“Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term.
“TWE Ascent is the key enabler of this reset. It is a disciplined, multi-year transformation programme designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date.
“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.”
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