On the day of its Annual General Meeting, 18 October 2018, Treasury Wine Estates Limited (ASX: TWE) traded at the day-high of $17.27 before closing at $16.970. This upstroke has recorded a daily price change of 1.012% or $0.170 ahead of the market release of Chairman’s and CEO’s address to shareholders.
In the address to shareholders, Chairman Paul Rayner stated that launch of TWE’s new Italian wine brand, Cavaliere d’Oro, is currently the biggest milestone in the expansion of company’s country-of-origin portfolios.
He further highlighted the success of TWE’s augment reality platform, Living Wine Labels where consumers have the opportunity to interact with the virtual world in real time environment to experience the brands offered by Treasury Wine. This TWE technology that intends to entertain, appeal and educate consumers, is said to be the first in global wine sector.
Whereas, Chief Executive Officer Michael Clarke shed light on company’s financial performance in Fiscal 2018. As disclosed in annual report, Mr. Clarke addressed FY18’s double digit EBIT growth achieved by the company for the fourth time in a row. TWE’s FY18 Earnings before interest and tax was $530.2 million, up 17% on prior year. Its EBIT margin for FY18 was 21.8%, up 3 percentage points, leading the company to come closer to its milestone EBIT margin target of 25%.
The company has also succeeded in delivering a significant value accretion in FY18 with Return on Capital Employed increasing 1 percentage point to 12.6% and with Earnings Per Share up 36% to 49.7 cents per share. Underpinned by strong financial performance in fiscal year 2018, the wine maker TWE had declared the final dividend of 17 cents per share, fully franked, which had brought FY18’s full year dividend to 32 cents per share, 23% higher on previous financial year.
Mr. Rayner confirmed that the company is in partnership with regulatory and government bodies to ensure maintenance of strong trade relationship with its key export partners and a constant support of Free Trade Agreements.
Further, in the voting round, majority of shareholders voted in favor of re-election of Mr. Ed Chan and election of Ms Colleen Jay as Directors of the Company. The resolution passed in relation to the grant of performance rights to the Chief Executive Officer Mr. Michael Clarke under TWE’s Long Term Incentive Plan has also received the green card from the company’s shareholders.
Chairman Paul Rayner acknowledged the retirement of Director Mr. Michael Cheek, who has been retired from the Board at the close of today’s 2018 Annual General Meeting of the company. Further, he addressed the incoming of new Director Louisa Cheang, slated to join the Board from 1 December 2018.
Moving ahead with ‘consumer-pull’ strategy instead of ‘customer-push’ strategy in China, Treasury Wine Estates targets to expand its brand portfolio beyond Penfolds wine brand, increasing reach of its French and Italian wine categories, said CEO Michael Clarke.
In today trading session on ASX, the stock of TWE last traded at $16.970 with market capitalization of $12.07 billion. Further, the stock has seen a performance change of +16.26% over the past one year.
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