2 Wine-Related Stocks: TWE And AVG

  • Jan 09, 2019 AEDT
  • Team Kalkine
2 Wine-Related Stocks: TWE And AVG

The nation’s benchmark index S&P ASX 200 witnessed a rally of 1% today, closing at AUD 5778.3, up by 55.9 points. Below are the two wine-related stocks which closed in green with the end of the trading session today.

Australian Vintage Ltd (ASX: AVG) is a frontrunner in the Australian wine industry. Its brand portfolio includes Miranda, Nepenthe, Tempus Two, Passion Pop and Mcguigan Wines. Its offerings include vineyard management, contract processing & packaging, bulk wine production, packaging and supply. 

The shares of Australian Vintage are trending downward over the last six months, offering a negative return of 9.86%. However, the shares are up by 2.13% since last five trading sessions. The company’s stock soared by 1.042% today, closing at AUD 0.485, as compared to the previous close of AUD 0.480. With the Earnings per Share of AUD 0.028, the company has a Price-Earnings ratio of 17.14x.

AVG declared a Net Profit After Tax of $7.7 million compared to $4.3 million in the previous year, representing an impressive increase of 79%. EBIT stood at $16.2 million compared to $11.3 million during the last period. The company reported an operating cash flow of $26.7 million, the highest since last 12 years. The sales figure reflected an improvement of 14% with a continuous focus on three core brands- Tempus Two, Mcguigan Wines and Nepenthe. The company continued to target the UK market despite the Brexit vote as reflected by 25% improvement in UK sales. Sales were pushed up in other overseas markets with Asia sales up by 9% and North America by 31%.

The company’s future business strategy encompasses growing export business, increasing brand sales and focus on cost control operations. Considering this, investors may keep a close watch over AVG stock.

Treasury Wine Estates Limited (ASX: TWE) is Australia based world’s leading wine-making company involved in the production, marketing and supply of wine. The company owns rich viticulture assets. Its brand portfolio includes Blossom Hill, 19 Crimes, Acacia Vineyard, Annie’s Lane, Coldstream Hills and many more world-famous brands.

The shares of TWE zoomed by 7.18% in today’s trading session, settling the day at AUD 14.960 with a market capitalization of AUD 10.32 billion. Over the last three months, the company’s stock has dropped by 17.33%. However, the share price has gone up by 4.4% for one month. The stock offers a positive performance change of 334.95% since its inception. With the Earnings per Share of AUD 0.497, the company has a Price-Earnings ratio of 28.890x.

Treasury Wine owns 72 vineyards and seven wineries in Australia & New Zealand, 46 vineyards and seven wineries in America and two vineyards and one winery in Europe. The company declared EBIT of $530.2 million in FY 2018, with an increase of 17% over FY17. As stated in the annual financial statement, FY18 recorded the fourth consecutive year of double-digit EBITS growth. The Return on Capital Employed demonstrated an increase of 12.6%. The company declared a fully franked final dividend of 17 cents per share, resulting in 32 cents per share annual dividend of FY 2018. The Total Shareholder return of 35% for the year is noteworthy.


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