• 1H26 EBITS of $236.4m in line with December guidance
• Softer category trends and impact of parallel import restrictions in 1H26
• Progressing TWE Ascent transformation program, targeting $100m p.a. cost savings

Treasury Wine Estates reported its 1H26 results, with EBITS of $236.4m, in line with the December guidance range of $225-$235m. The company faced softer category trends and the impact of restrictions on Penfolds shipments to limit parallel import activity, which contributed to a 1H26 Statutory NPAT loss of $649.4m due to non-cash impairment of US assets. However, the underlying business performance remains positive, with depletions growth continuing in key markets such as China and Australia. TWE is focused on executing to drive depletions growth, with strong activation and distribution growth across key brands. The company has suspended its F26 interim dividend as a temporary measure and is deferring non-essential capex to maintain balance sheet strength, with leverage at 2.4x. TWE is progressing its TWE Ascent transformation program, targeting $100m p.a. in cost savings over a 2-3 year period, with initial benefits starting in F27. The program aims to evolve TWE's portfolio, transform the operating model, and materially reduce operating costs to position the company for the future.

TWE expects 2H26 EBITS to be higher than 1H26, with Penfolds EBITS expected to be around $400m and Treasury Americas EBITS expected to be around $90m, excluding the benefits and costs associated with the RNDC settlement.