Treasury Wine Estates Reports FY '25 Results: Net Sales Revenue Grows 7.2% to $2.9bn, EBITS Up 17% to $770.3mln.

Treasury Wine Estates reported a 7.2% increase in net sales revenue to $2.9 billion and a 17% rise in EBITs to $770.3 million in FY25. The growth was driven by the expansion of Penfolds and the full-year contribution of DAOU in the U.S. However, on an organic basis, net sales revenue declined. The company navigated economic and category headwinds to deliver another year of great performance and growth.

Treasury Wine Estates Ltd (ASX: TWE) has reported robust financial results for the fiscal year 2025, showcasing resilience amidst economic and category challenges. The company's net sales revenue climbed 7.2% to $2.9 billion, while EBITs surged 17% to $770.3 million. The margin improved to 26.2% on a stronger premium mix [1].

The growth was primarily driven by the expansion of Penfolds and the full-year contribution of DAOU in the U.S. Penfolds delivered another strong year, led by the return of its Australian range to China and broader Asian momentum. EBITs rose 13.8% with a margin of 44.4%, and Asia ex-China depletions increased 18% year-on-year. Treasury Americas also grew with a full-year contribution from DAOU, now the number one US luxury wine brand, holding a 12% share of the US luxury segment [1].

Despite these positive developments, the company experienced an organic decline in net sales revenue. Treasury Wine Estates management attributed this to broader US demand softening late in the year. The company also announced an on-market share buyback of up to $200 million for FY26 and shifted to a new divisional model, with Treasury Americas focusing on luxury and a new global premium division, Treasury Collective, formed [1].

Treasury Wine Estates expects another year of EBITs growth in FY26. For Penfolds, management guides to low-to-mid double-digit EBITs growth, with margins around 44%, supported by increased Bin & Icon availability from 4Q26. Top-line declines are expected to moderate as priority brands grow. However, the company expects a $50 million reduction in net sales revenue due to Californian distribution changes [1].

The share price snapshot reveals that Treasury Wine Estates shares have underperformed the market over the past 12 months, down 37% while the S&P/ASX 200 Index (ASX: XJO) has increased 13% [1].

Treasury Wine Estates' Chief Executive Officer, Tim Ford, commented on the result: "Overall, I am pleased with TWE's fiscal 25 performance. While we continued to face headwinds in a number of markets, we remained laser-focused on executing our business plans, further strengthening the business for long-term growth and achieving strong financial performance, underpinned by Penfolds' continued momentum and integrating DAOU into our Luxury portfolio. We also completed transitioning to our new Luxury portfolio-led operating model, a structural evolution that enhances our strategic clarity and positions us well for the future. I am incredibly proud of the transformation we’ve delivered over the past five years and want to thank our people for their passion, resilience and commitment to delivering on our strategy. I am confident that the team and the business is entering fiscal 26 well positioned to harness the attractive opportunities in the Luxury wine category" [1].

References:
[1] https://www.fool.com.au/2025/08/13/treasury-wine-estates-fy25-result-revenue-up-7-2-ebits-up-17/
[2] https://theshout.com.au/penfolds-and-daou-drive-treasury-earnings-growth/
[3] https://www.investing.com/news/company-news/paysafe-q2-2025-slides-organic-growth-of-5-amid-revenue-decline-and-rising-leverage-93CH-4184763