• EBITS $236.4m versus $225-235m guidance, a decline of 39.6%, reflecting the impact of adverse category trends in the US and China
• Statutory NPAT loss $649.4m; reflecting post-tax material items loss of $751.0m due to non-cash impairment of US based assets
• TWE has suspended the payment of its F26 interim dividend to prioritise the preservation of capital and reduce Leverage

Treasury Wine Estates reported a 39.6% decline in EBITS to $236.4m in 1H26, 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 showed a loss of $649.4m, primarily due to a non-cash impairment of $751.0m on US-based assets. The company's underlying performance of key brands remains positive, with depletions growth across Penfolds, DAOU, Frank Family Vineyards, and Stags' Leap. TWE has suspended the payment of its F26 interim dividend to prioritise the preservation of capital and reduce Leverage. The company has commenced strategic actions to maintain brand strength and healthy sales channels, with a focus on reducing customer inventory holdings in the US and China. TWE Ascent, a transformation program targeting $100m per annum in cost savings, is progressing well. Near-term priorities are 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 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 through the TWE Ascent transformation program. The company is confident in the strength of its portfolio and ability to deliver improved performance as it executes the business transformation.