• Penfolds China depletions expected to miss targets
• Treasury Americas impacted by California distribution change
• Treasury Collective US performance also affected by distribution transition

Treasury Wine Estates Limited (ASX:TWE) has provided an update on its F26 performance expectations for Penfolds, Treasury Americas and the Group, as well as an update on 1Q26 trading performance for Treasury Collective. For Penfolds, 1Q26 shipments were in line with expectations globally, but preliminary data indicates that depletions remain weak relative to plan in China, likely resulting in Penfolds not achieving its F26 depletions targets in that market. As a result, TWE no longer believes it is appropriate to retain the Penfolds guidance for low to mid double-digit EBITS growth in F26 and approximately 15% EBITS growth in F27. For Treasury Americas, the portfolio is performing well outside of California, but depletions were impacted by the distributor transition, including key account set-up activities in September. TWE is in negotiations with the incumbent distributor, RNDC, regarding the remaining inventory and the financial impact of the distribution change, which may result in an additional impact to TWE's F26 shipments and operating plan NSR. Due to the uncertain outlook for Penfolds and Treasury Americas, TWE has formed the view that it is no longer appropriate to retain its guidance for EBITS growth at a Group level in F26. The on-market share buy-back program will also be paused until there is greater clarity around trading conditions and expectations.