• TWE reaches settlement with RNDC over California market exit
• TWE to repurchase inventory, net cash outflow of ~US$65m in 2H26
• TWE expects 1H26 EBITS to be ~$236m, above prior guidance

Treasury Wine Estates Limited (TWE) has reached a settlement agreement with its US distributor Republic National Distributing Company (RNDC) regarding RNDC's closure of operations in California in September 2025. As part of the settlement, TWE will repurchase Treasury Americas and Treasury Collective portfolio inventory held by RNDC in California for its original sale value, net of a confidential settlement amount that compensates TWE for the impact of RNDC's exit. After accounting for the expected on-sale of this inventory to other customers, the net cash outflow for TWE in 2H26 is expected to be approximately US$65m. TWE will continue to partner with RNDC to distribute its portfolio across a number of other US markets and is supportive of RNDC's initiatives to strengthen their business model and capital structure. In 1H26, Treasury Americas depletions in states distributed by RNDC grew 2.7%. The settlement does not alter TWE's planned reduction of distributor inventory levels outside of California over the next two years. TWE expects 1H26 EBITS to be approximately $236m, compared to the $225-235m guidance range provided previously.

TWE expects 1H26 EBITS to be approximately $236m, compared to the $225-235m guidance range provided on 17 December 2025.