Treasury Wine Estates (ASX:TWE) is undergoing a primary restructuring, a $300 million write-down of its Treasury Premium Brands (TPB) department and plans to sell several underperforming brands.
The company is now focusing on premium and premium wines, with its flagship red wines in the spotlight.
TWE said on Tuesday that it expects a non-cash writedown of $354 million on its 2023-24 monetary results, which will be released later this month. This will result in an after-tax impact of approximately $290 million.
The impairment includes a goodwill impairment rate of $115 million and an advertising wine brand cancellation of $229 million, which will be classified as an item.
Write-downs basically fear brands such as Wolf Blass (acquired in 1996), Yellowglen (acquired in 1996), Lindeman’s (acquired in 2005) and Blossom Hill (acquired in 2015). These brands contributed less than 5% of the TWE Group’s gross profit. margin in fiscal year 2024.
Due to the difficult market situations for advertising wines and the poor performance of TPB brands at advertising prices, TWE had to sell those brands. However, locating buyers in the existing Australian wine industry is proving difficult.
Despite those challenges, TEW’s premiumization strategy has delivered positive results, with its predecessor premium brands (Wynn’s, Pepperjack, Squealing Pig and 19 Crimes) achieving a three-year compound annual expansion rate in sales of 10%.
The company expects unaudited pretax profit of $658. 1 million for the fiscal year, an increase of 13% from last year. The annual results will be published on August 15.
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Deep Leads Resource Increases Across the Board: Quality, Tonnage and Target Zone ABx Group has reported a 30% increase in its mineral resource estimate (MRE) at the rare ion adsorption clay earth deposit ( IAC) from Deep Leads in northern Tasmania. The accumulation at MRE comes from 36 assayed exit wells, representing a significant northward extension to the existing Deep Leads prospect.
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WT Financial Group Limited (WTL) is a developing diversified monetary company, founded in 2010 and indexed on the Australian Stock Exchange (ASX) in 2015. Its recommendations and product offerings are provided primarily through an organization of monetary advisors independents who act as legal representatives. of WTL under its broker organization businesses Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). It has approximately 275 advisors in over two hundred money advice companies across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
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