• EBITS $236.4m versus $225-235m guidance, a 39.6% decline
• Statutory NPAT loss $649.4m due to non-cash impairment of US assets
• Suspending F26 interim dividend to prioritise capital preservation

TWE reported a 39.6% decline in EBITS to $236.4m, reflecting the impact of adverse category trends in the US and China, restriction of shipments contributing to parallel import activity in China, and cycling of prior year shipments. Statutory NPAT recorded a loss of $649.4m, primarily due to a non-cash impairment of $770.5m post-tax on US-based assets. The company has commenced strategic actions to maintain brand strength and healthy sales channels across key markets, with reducing customer inventory holdings in the US and China a priority. TWE Ascent, the company's global transformation program, is progressing well and targeting $100m per annum in cost improvements over 2-3 years. Near-term priorities are focused on market execution, cash flow, and accelerating Project Ascent benefits. TWE expects 2H26 EBITS to be higher than 1H26, driven by improved momentum in California following the completion of the distribution transition in 1H26.

TWE expects 2H26 EBITS to be higher than 1H26, driven by improved momentum in California following completion of distribution transition in 1H26. Penfolds expects F26 EBITS to be approximately $400m, with EBITS margin to be approximately 40%.

TWE's focus is on strengthening execution and building a stronger, more resilient business for the long term. The TWE Ascent transformation program is a key enabler, designed to sharpen the portfolio, simplify the organisation, and optimise the cost base.