• 1H26 EBITS of $236.4m, in line with December guidance
• Statutory NPAT loss of $649.4m due to non-cash impairment of US assets
• Elevated focus on costs, cash and capital structure strength

Treasury Wine Estates reported its 1H26 results, with EBITS of $236.4m in line with the December guidance range of $225-$235m. However, the company recorded a statutory NPAT loss of $649.4m, driven by a non-cash impairment of US-based assets. TWE's underlying business performance remains positive, with depletions growth continuing in key markets such as China and Australia. The company is taking actions to ensure brand and channel health, including a significant reduction in Penfolds shipments to restrict parallel import activity. TWE is also progressing its TWE Ascent transformation agenda, targeting $100m per annum in cost improvements over a 2-3 year period. To preserve capital and reduce leverage, TWE has suspended its F26 interim dividend and is deferring non-essential capex. The company remains focused on execution, cost control, and driving the TWE Ascent program to create a stronger, more efficient TWE with a focus on delivering attractive returns and cash generation.

TWE expects 2H26 EBITS to be higher than 1H26. The company is targeting $100m per annum in cost improvements across a 2-3 year timeframe, with initial benefits commencing in F27.

TWE is focused on driving depletions-led execution performance across all markets, continuing the underlying momentum on core brands, and accelerating its TWE Ascent transformation program to create a stronger, more efficient company with a focus on delivering attractive returns and cash generation.