Penfolds owner won't compromise on price as earnings wobble
Treasury Wine Estates has no plans to cut prices for its flagship Penfolds range, saying demand for premium wines remains solid, while blaming a weaker profit outlook on the cost of additional staff hires to boost sales.
Departing chief executive Tim Ford said the company would spend an extra $10 million to expand its sales force in China – the biggest market for Penfolds, which generates almost 60 per cent of Treasury Wine's profits.
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West Australian
19 hours ago
- West Australian
Treasury Wine Estates warns of weaker performance from money-maker Penfolds
Treasury Wine Estates has warned investors to expect a weaker performance from its flagship Penfolds label as it spends up big on marketing to re-establish its presence in China while sales in the US falter. In an investor update to the market on Tuesday, the company said it now expects earnings for Penfolds in 2025-26 to record low to mid double-digit growth — down from a previous forecast of about 15 per cent. It is still expected to make up the lion's share of earnings. 'Following the focus on re-building distribution in China through F25, customer inventory holdings across several of Penfolds' other key markets are below historic levels while depletions remain strong, most notably throughout the rest of Asia,' the update said. 'This is expected to support the delivery of Penfolds' global growth expectations in F26.' For its Treasury Americas division, TWE said economic uncertainty and weaker consumer demand had been reflected in declining wine consumption trends across key sales channels throughout the second half of the current financial year, a softer market more pronounced at the below $US15 ($23) price points. The company also revealed a new operating structure to take effect from July 1 that will pour its budget-friendly offerings — including Speaking Pig, 19 Crimes, Wynns, Lindmans, Blossom Hill and Wolf Blass — into a new division called Treasury Collective. TWE also announced plans to launch an on-market share buyback for up to 5 per cent of its issued capital as part of its full-year results update in August. The update comes just weeks after the company announced it would need to find a new path into the Californian market after its local distributor said it would cease operations later this year. The shock decision by Republic National Distributing Company is a serious blow for the winemaker, with the shuttered distributor responsible for about 25 per cent of TWE's sales for its Americas division and 10 per cent of total group sales.
AU Financial Review
19 hours ago
- AU Financial Review
Penfolds owner won't compromise on price as earnings wobble
Treasury Wine Estates has no plans to cut prices for its flagship Penfolds range, saying demand for premium wines remains solid, while blaming a weaker profit outlook on the cost of additional staff hires to boost sales. Departing chief executive Tim Ford said the company would spend an extra $10 million to expand its sales force in China – the biggest market for Penfolds, which generates almost 60 per cent of Treasury Wine's profits.
News.com.au
20 hours ago
- News.com.au
Lunch Wrap: Virgin's ASX comeback lifts market mood as oil stocks slump
ASX jumps as war fears ease, and oil tanks Virgin lands back on ASX after $685m IPO Collins rockets, TWE pops, CBA breaks records The ASX came out swinging on Tuesday, jumping 1% by lunch time in the east as traders piled back into risk. Although energy stocks were whacked after crude prices plummeted 9% overnight, the rest of the ASX market had a ripper. The plunge in oil was triggered after Iran's retaliation to US strikes appeared to be all puff. The missile barrage in Iraq and Qatar didn't hit oil infrastructure, and the Strait of Hormuz wasn't blocked. Trump immediately declared a 'complete and total ceasefire' between Iran and Israel, even if Iran later said, 'eh, not quite'. Either way, it was enough for the ASX, Asian stock markets and US futures to rip higher this morning. Not surprisingly, though, local energy names felt the pinch. Woodside Energy Group (ASX:WDS) tumbled 7.5%, and Santos (ASX:STO) dipped 1.5%. But elsewhere, Commonwealth Bank (ASX:CBA) hit another intraday record, cracking $188.36 after topping its own Monday high. Over in the mining pits, Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) gained nearly 3% each. Tech darlings were also in the winners' circle, with WiseTech Global (ASX:WTC) climbing 4%, and NextDC (ASX:NXT) up by 2%. In other large caps news, Treasury Wine Estates (ASX:TWE) put a grin on investor faces, rising as much as 6% after reaffirming earnings guidance and hinting at a 5% share buyback. Penfolds growth might slow next year, but TWE said it was still betting big on luxury wines, Asia and a fancy new premium division called Treasury Collective. And Collins Foods (ASX:CKF) absolutely exploded, up 18% despite reporting an 88.5% plunge in statutory net profit. The market seems to think the worst is over for Collins. Same-store sales are picking up, interest rates are starting to ease, and the company is still dishing out a 15c fully franked dividend. But, here's the main event today: Virgin Australia (ASX:VGN) has finally touched back down on the ASX runway. Virgin's shares opened at $3.15, up around 8% on its IPO price. After raising $685 million in a heavily oversubscribed IPO, Virgin is back on the boards, five years after it crashed into administration and delisted with $7 billion in debt. Bain Capital did the heavy lifting, turning the airline into a leaner mid-market player. Qatar Airways is still in with its 23% stake. The timing's not bad, too. Domestic travel's picking up, the ASX is in decent form, and oil prices are doing a nosedive today. Even Qantas (ASX:QAN) shares jumped 3.5% this morning on the oil news. Investors are also hoping Virgin's re-listing might finally break the post-Covid IPO drought and get some fresh names flying onto the ASX. ASX SMALL CAP WINNERS Here are the best performing ASX small cap stocks for June 24 : Security Description Last % Volume MktCap GBZ GBM Rsources Ltd 0.013 117% 43,344,251 $7,026,420 OLY Olympio Metals Ltd 0.080 86% 1,702,245 $3,786,894 AXP AXP Energy Ltd 0.002 50% 5,007,393 $6,684,681 JAY Jayride Group 0.002 50% 300,001 $1,427,889 MEL Metgasco Ltd 0.003 50% 100,000 $3,665,173 SRL Sunrise 0.950 46% 840,166 $71,647,874 OLH Oldfields Holdings 0.021 31% 153,166 $3,408,946 LOC Locatetechnologies 0.175 30% 2,693,178 $30,865,953 RML Resolution Minerals 0.050 25% 28,921,673 $26,325,061 AAU Antilles Gold Ltd 0.005 25% 2,763,007 $9,505,472 OVT Ovanti Limited 0.003 25% 2,268,516 $6,011,030 SRJ SRJ Technologies 0.005 25% 3,515,049 $2,422,312 TMK TMK Energy Limited 0.003 25% 7,209,330 $20,444,766 VML Vital Metals Limited 0.003 25% 5,118,290 $11,790,134 ICR Intelicare Holdings 0.006 20% 1,083,166 $2,430,941 KME Kip McGrath 0.500 19% 209,810 $23,901,019 CLG Close Loop 0.025 19% 4,659,180 $11,168,847 LMG Latrobe Magnesium 0.010 19% 4,674,674 $21,012,720 CKF Collins Foods Ltd 8.510 17% 2,023,315 $855,828,496 RPG Raptis Group Limited 0.041 17% 240,770 $12,273,970 AX8 Accelerate Resources 0.007 17% 950,236 $4,903,132 EXL Elixinol Wellness 0.014 17% 40,041 $2,752,699 FAU First Au Ltd 0.004 17% 5,654 $6,215,980 ID8 Identitii Limited 0.007 17% 530,000 $4,668,081 LU7 Lithium Universe Ltd 0.007 17% 371,510 $4,715,878 GBM Resources (ASX:GBZ) is raising $13 million through a placement to wipe out debt and ramp up exploration at its Twin Hills and Yandan gold projects in Queensland's Drummond Basin. It's bringing in heavyweight Ian Middlemas as chairman, along with Peter Fox and Robert Behets as new directors, as part of a broader board reshuffle. The raise clears all $6.2 million in convertible notes and ends a previous farm-in deal with Wise Walkers, who'll now join the register with a 20% stake. With zero debt and 1.84Moz in JORC gold resources, GBM says it's ready to go hard on drilling and unlock more gold across its 100%-owned tenements. Olympio Metals (ASX:OLY) has struck visible gold in the very first drillhole at its maiden program in Quebec's Bousquet gold project, hitting a nine-metre mineralised zone at the Paquin prospect from 183 metres down. The gold sits in smoky quartz veining loaded with sulphides and strong alteration, with more promising geology logged down to 286 metres. It's a strong start for a project located along the Cadillac Break, one of Canada's top-tier gold belts, and assays from the hole are due mid-July. ASX SMALL CAP LOSERS Here are the worst performing ASX small cap stocks for June 24 : Code Name Price % Change Volume Market Cap ERA Energy Resources 0.002 -33% 5,870,740 $1,216,188,722 GMN Gold Mountain Ltd 0.001 -33% 86,623,800 $8,429,639 HLX Helix Resources 0.001 -33% 2,000,000 $5,046,291 JAV Javelin Minerals Ltd 0.002 -33% 2,670,345 $18,378,447 ANX Anax Metals Ltd 0.005 -29% 16,845,063 $6,179,653 AMS Atomos 0.003 -25% 5,490,704 $4,860,074 HCD Hydrocarbon Dynamics 0.002 -25% 2,185 $2,156,219 CUL Cullen Resources 0.004 -20% 1,366,467 $3,467,009 EE1 Earths Energy Ltd 0.004 -20% 808,300 $2,649,821 MEM Memphasys Ltd 0.004 -20% 125,000 $9,917,991 RLG Roolife Group Ltd 0.004 -20% 60,000 $7,963,906 BEL Bentley Capital Ltd 0.009 -18% 31,765 $837,407 BRU Buru Energy 0.025 -17% 4,475,430 $23,382,288 AN1 Anagenics Limited 0.005 -17% 8,940,000 $2,977,922 CYQ Cycliq Group Ltd 0.003 -17% 233,333 $1,381,550 DGR DGR Global Ltd 0.005 -17% 2,153,600 $6,262,176 GLL Galilee Energy Ltd 0.005 -17% 424,500 $4,243,157 SHP South Harz Potash 0.003 -17% 214,146 $3,308,186 TEG Triangle Energy Ltd 0.003 -17% 3,446,596 $6,267,702 GRV Greenvale Energy Ltd 0.031 -16% 195,148 $20,141,814 DME Dome Gold Mines Ltd 0.160 -16% 3 $79,159,949 HHR Hartshead Resources 0.006 -14% 140,000 $19,660,775 ODE Odessa Minerals Ltd 0.006 -14% 321,578 $11,196,728 CTN Catalina Resources 0.004 -13% 157,760 $9,704,076 ENV Enova Mining Limited 0.007 -13% 420,089 $11,660,801 IN CASE YOU MISSED IT Having encountered a substantial amount of supergene gold at the Gidji joint venture project, Miramar Resources (ASX:M2R) is launching a sub-audio magnetic survey in a bid to find the source. X2M Connect (ASX:X2M) has secured a $3 million public safety contract with the City of Seoul in South Korea for its smart personal safety devices. Sierra Nevada Gold (ASX:SNX) has returned high-grade gold from sampling at four historic tailings dams at its New Pass project in Nevada, USA. Magnetic Resources (ASX:MAU) has boosted contained gold resources at its Lady Julie project in WA's Laverton region by ~22% to 2.14Moz just days after signing a key native title agreement. LAST ORDERS Sovereign Metals' (ASX:SVM) conservation farming program in Malawi has drastically increased crop yields for local farmers, achieving four times the traditional yield and up to 10 times for the top performing farmer. SVM launched its conservation farming program as part of the development of the nearby Kasiya rutile and graphite project in 2024. An additional 260 farmers have joined since the original 90 trained with the program the previous planting season. Titanium Sands (ASX:TSL) executives have come away from a conference with the Ministry of Finance, Planning and Economic Development, and similar stakeholders in Sri Lanka with a firm belief the government is supportive of a heavy mineral industry. The company presented its view on frustrations and delays the project had encountered while focusing on solutions and where the Ministry could streamline the approvals process. At Stockhead, we tell it like it is. While Sovereign Metals and Titanium Sands are Stockhead advertisers, they did not sponsor this article.
