Sgara

Feb 14, 2023

Eamon Gallagher The Penfolds division produced a 10 per cent rise in earnings before interest, tax and the SGARA accounting standard to $182 million. The company said Penfolds sales in Asia were up 8.4 per cent to $221 million, indicating the diversification strategy was making strong headway. Australia’s wine exports to China plunged to just $12.4 million annually in 2022 compared with $1.3 billion before Beijing imposed punishing tariffs in late 2020, Wine Australia announced on February 7. China was the most lucrative market for Australian exporters before Chinese President Xi Jinping in late 2020 slapped tariffs of between 116 per cent and 218 per cent on the biggest Australian wine exporters. Treasury Wines was hit with a tariff of 175.6 per cent. The Treasury Americas business lifted earnings before interest, tax and the SGARA accounting standard by 35 per cent to $115 million. The company expanded in the United States in late 2021 with the $434 million purchase of Californian chardonnay maker Frank Family Vineyards. The 19 Crimes brand, with American rapper Snoop Dogg as the frontperson, delivered solid growth. The company said overall profit margins were up by 3.2 percentage points to 23.9 per cent, with the company sticking to its ambition of reaching 25 per cent margins. Mr Ford said the strong overall results showed the company’s prowess in navigating the “changing and variable economic and consumer market dynamics” with financial discipline. Treasury Wine shares have made a solid recovery from $10.73 in mid-June last year, reaching $14.79 by February 3. Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter . Email Simon at simon.evans@afr.com Save