Treasury Wine Estates $52.3m Up 31% 1H2013

Australia's largest publicly listed wine company, Treasury Wine Estates (ASX:TWE) have announced its half year financial results for 2013 to its shareholders and investors on the Australian stock market.

• Treasury Wine Estates have announced a profit of $52.3 million, up 31 percent on the previous corresponding period of $30 million. In the prior corresponding period in 2011, the company was dealing with costs relating to its spin off from Fosters.
• Treasury Wines total volume was 16.5 million cases, down 2.5 percent on the previous period, resulting in a slight fall in revenues to $850.7 million from $863.1 million.
• The company also recently sought funding from Tourism Australia. Treasury Wines Estates chief executive David Dearie said, "We need others, including federal and state governments, to do more. I urge politicians of all political persuasions to consider additional funding to support those serious wine companies like TWE who do so much to showcase Australian wines internationally, to drive regional tourism and provide much-needed regional and rural employment."
• CEO Dearie said, "This result was impacted by a significant COGS increase, up $2.24 per case, principally driven by the weather affected 2011 vintage, and a challenging retail landscape. However, we continue to invest for growth and during the first half we purchased 591 hectares of premium vineyards in South Australia and the Napa Valley, we also acquired the remaining 50% of what is now the Matua Marlborough winery and we increased our USA non-current inventory by 50 percent. These investments ensure TWE is well positioned to better satisfy the growing consumer demand for our luxury and masstige wines in existing and new markets."
• "The global wine industry outlook remains positive as consumers continue to seek out more premium wine, and TWE will continue to invest for future growth by ensuring that we have the brands and quality wines to meet this increasing demand. Overall the wine industry is edging ever closer to supply and demand balance with the poor 2012 vintage in Europe further reducing global supply. Early signs of the 2013 Australian vintage appear generally favourable with growing conditions characterised by low rainfall in winter and the growing season to date," said CEO Dearie
• Treasury Wine Estates' brands include Fifth Leg, Beringer Vineyards, Lindeman’s, Penfolds, Rosemount Estate and Wolf Blass with a total of 54 brands altogether selling 32 million cases annually. Treasury Wines' closest competitor is Australian Vintage (ASX:AVG)
• Treasury Wine Estates will pay a 50 percent franked interim dividend of 6 cents per share.