Treasury Wine Sacks CEO On Breach of Internal Policies

Treasury Wine

On 21 January 2019, Treasury Wine Estates Ltd (ASX: TWE) confirmed that company’s Chief Operating Officer, Robert Foye, has left the organization, effective immediately, due to a breach of TWE’s internal policies unrelated to the Company’s trading performance. Tim Ford, Deputy Chief Operating Officer, will assume the role of Chief Operating Officer, reporting to Chief Executive Officer, Michael Clarke. He will handle the critical responsibility for oversight of TWE’s operating regions across the global business. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

The following executive members will continue to lead the TWE’s operating regions:

  • Peter Dixon – Managing Director, Asia
  • Victoria Snyder – President, Americas
  • Angus McPherson – Managing Director, Australia & New Zealand and Europe

The Company restates 14 February 2019 for announcing its audit reviewed interim results for fiscal 2019. As also announced on 10 January 2019, the company is content with the trading performance across all operating regions, despite the uncertain volatility within the US and Asian markets. The company is confident that the financial results for 1H19 will be above the projection of A$332m EBITS and will be within the range of A$335m to A$340m. The company reiterates the Full year guidance of approximately 25% reported EBITS growth for fiscal year 2019.

Treasury Wine Estates is Australia’s listed world-class winemaker, marketing popular wine brands such as Acacia, 19 Crimes, Beringer, Blossom Hill, Lindeman’s, Matua, Penfolds, Rawson’s Retreat and many more. The company has marked its presence across Australia, New Zealand, America, Asia, and Europe.

Treasury Wine has recorded 17% EBITS growth at $530.2 million in FY18. EBITS margin of 21.8% were noted with an accretion of 2.85%. With a 30% growth on the y-oy basis, Earnings per Share stood at 51.8 cents. The Return on Capital Employed increased by 12.6%. The EBITS growth of FY18 contributes to EBITS CAGR of 25% for four years. The company reiterated 25% EBITS growth for FY 2019.

In terms of region-wise EBITS performance, the Americas posted $193 million EBITS (upside of 1.7%), and the Asian region reported a 37.5% impressive jump in EBITS to $205.2 million. The Australian and New Zealand combined region contributed an EBITS margin of 22.7% to $136.1 million. The European region recorded an upside of 9.3% in EBITS to $49.5 million.

Treasury Wine successfully completed on-market share repurchase plan of $300 million at an average price of $15.41 per share in FY18. The company declared a fully franked dividend of 17 cents per share, with a total annual dividend of 32 cents per share, representing an increase of 23% as compared to the previous year.

The company is looking forward to increased market presence across the globe, a stronger and innovative product pipeline, strategic customer relationships and revenue-driving portfolio initiatives for the FY19.

On 20 November 2018, Treasure Wine announced a new USD 350 million syndicated debt facility consisting of a five-year tranche of USD 120 million and a seven-year tranche of USD230 million, thereby maintaining cost efficient capital base.

Stock performance: TWE stock soared by 1.043%, closing at A$15.50 on 21 January 2019. With Earnings per Share of A$0.497, the company is trading at an earnings multiple of 30.870x. Although the shares are trending downward since last six months, plunging by 12.54%, they are offering a YTD return of 4.50% till date to its shareholders.


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