The Treasury Wine Estates Ltd (ASX: TWE)
share price has tumbled down on Wednesday and was amongst the worst performers on the local market.
The share price dropped down by 5% ($15.43) which was the outcome of the release of export data from Wine Australia. The company released its export data for a period of 12 months ending September 30, 2018. As per the export data, the company has experienced a huge growth in terms of both value and the volume. The value of the wine export got increased by 11% i.e. $2.7 billion. Also, the volume of export also got lifted by 5% which is equivalent to 842 million litres.
Apart from all these, the company also experienced a growth of 8% in the shipment of the bottled wine which was approximately $2.16 million and 2% by volume which was equivalent to 366 million litres. There was also an increase in the shipment charges by 23% representing $525 million and 9% by volume equivalent to 468 million litres within a period 12 months. The only positive factor was that the average value of wine exported got increased. As per the data, the value of bottled wine increased by 7% i.e. $5.90 per litre and 13% increased in case of unpackaged wine. In case of overall wine exported the value got increased by 5% i.e. $3.21 per liter.
As a result of growth in all the categories of wine there was also a growth in the performance. However, an increase in the export by 24% i.e. $1.14 billion in Northeast Asia has counterbalanced the performance for the U.S. exports which resulted in decline of $38 million for the U.S. exports.
From the sources of Wine Australia, there is a decline in the U.S. wine exports. As a result of which the share price of the Treasury wine has fallen down. For the Treasury Wine, this is a big market and is considered to be the key driver of its future growth. However as per the management of the Treasury Wine, the company has reached its target of 25% in regards to the profit growth for FY19. Based on the data. the management finds an opportunity for the investors to buy the shares and also hold it for a long term.
As per the data, the statistics of the industry shows that, Australian Vintage Limited (ASX: AVG) and Broo Ltd (ASX: BEE) shares are flat. On the other hand, Gage Roads Brewing Co Limited (ASX: GRB) shares experienced a fall in price by 4.5% today. For Treasury Wine Estates, tech share could be a great option for investors.
The current market price of the share is A$15.525 (AEST:3:02 pm) with market capitalization of A$11.64 billion and PE ratio 32.60x. As per the chart also, we see that the moving average convergence and the divergence line (MACD line) is moving below the signal line.
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