AUS
NZ
UK
CA
USA
IND
Highlights
- DAOU acquisition integration yields higher-than-expected synergies, enhancing margins and competitive positioning in the U.S.
- Rising demand for luxury wines in China and the U.S. aligns with TWE’s premium brand strategy.
- In 1HFY25, the company recorded 20.2% YoY increase in revenue, 34.6% jump in gross profit, and 22.9% YoY rise in EBIT.
Treasury Wine Estates Limited (ASX:TWE) is an ASX-listed vertically integrated global wine company which is doubling down on its luxury wine strategy, supported by key acquisitions, expanding premiumisation trends, and encouraging half-year financial performance.
DAOU Acquisition
TWE’s acquisition of DAOU Vineyards has bolstered its luxury wine portfolio, particularly in the U.S. market. With expected synergy benefits upgraded from USD 20 million to USD 35 million, the deal is driving operational efficiencies and improving margins.
This momentum is further supported by global shifts in consumer preferences toward premium and high-quality wines, especially in key markets such as China and the U.S.
Latest Financial Metric
In the half-year ended 31 December 2024 (1HFY25), TWE reported a 20.2% YoY increase in net sales revenue to AUD 1,544.2 million. Gross profit surged 34.6% to AUD 733.9 million, while EBIT before material items climbed 22.9% to AUD 376.7 million in 1HFY25. The company attributes this growth to its shift toward a premium product mix, effective distribution strategies, and the successful integration of DAOU.
Outlook
Looking ahead, TWE expects FY25 EBITS to reach approximately AUD 780 million, albeit at the lower end of prior guidance due to tempered performance from Treasury Premium Brands. Nonetheless, the company remains focused on expanding its high-margin luxury offerings, enhancing operational efficiency, and driving growth in strategic markets.
Recent Business Updates
Through an ASX update dated 1 May 2025, the company announced the appointment of Nigel Garrard to TWE’s Board of Directors, effective 1 May 2025.
On 3 April 2025, the company informed that the proposed 10% U.S. tariffs on Australian and New Zealand imports are likely to have minimal impact due to its largely U.S.-produced Treasury Americas portfolio.
Share performance of TWE
TWE shares closed 1.56% lower at AUD 8.83 per share on 5 May 2025. In a year, TWE’s share price has dropped by approximately 21.86% and in the past three months, it has dropped by nearly 15.98%.
52-week high of TWE is AUD 12.68, recorded on 24 June 2024 and 52-week low is AUD 8.22, recorded on 16 April 2025.
Support and Resistance Summary
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 05 May 2025. The reference data in this report has been partly sourced from EODHD/Others.
Technical Indicators Defined:
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Disclaimer
This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.
