Half Year 2024 Treasury Wine Estates Ltd Earnings Call Transcript
Key Points
- Luxury net sales revenue grew 4% globally, supporting stability in the top line.
- Penfolds continued strong momentum, particularly in Asia and Australia, despite shipment phasing.
- Treasury Americas luxury portfolio returned to growth driven by increased availability.
- Net sales revenue per case increased 9%, reflecting ongoing premiumization of the portfolio mix.
- The acquisition of DAOU is expected to deliver mid to high single-digit EPS accretion in FY25.
- EBITS declined 6% in the half to $289.8 million, with EBITS margin down 2.9 percentage points.
- Net profit after tax declined 5.9%, and earnings per share fell 7.5%.
- Cash conversion was below the annual target, at 66% excluding changes in premium and luxury non-current inventory.
- Leverage increased to 2.2 times due to borrowings for the DAOU acquisition.
- Treasury Premium Brands saw lower NSR and EBITS due to reduced shipments to Asia and double-digit declines in the commercial portfolio.
Thank you for standing by, and welcome to the Treasury Wine Estates fiscal year 2024 half year results. (Operator Instructions) I would now like to hand the conference over to Mr. Timothy Ford, Managing Director and Chief Executive Officer. Please go ahead, sir.
Good morning, everyone. Thanks for joining us for our half year results briefing. With me here in Melbourne is Stuart Boxer and Pete Neilson. Ben Dollard is in California and Tom King is in Paris, in France. I'm sure he'll explain why as we get through his part of the conversation today.
Pleased to announce the results today for the first half of fiscal '24. It's a period where our group performance was broadly in line with expectations and reflective of the continued strengthening of our luxury wine portfolio and the strong consumer demand that still exists around the world for luxury brands.
There's no question, though, that it is a challenging operating environment with pretty
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