Penfolds maker Treasury Wine Estates has seen its profits slump by a quarter as the coronavirus pandemic prompted restaurant and hotel closures around the world and the company faced a wine glut in the US, one of its key markets.
Net income fell 25 per cent to $315.8 million in the year to June 30, the Melbourne-based company said in a statement to the ASX on Thursday morning. Sales revenue for Australia’s biggest wine company fell 6 per cent to $2.65 billion, with COVID-19 affecting its trading performance across the world.
Treasury Wine, which recently appointed long-term executive Tim Ford as its new chief executive, reported total EBITS (earnings before interest, tax, the agricultural accounting standard SGARA and material items) of $533.5 million, which was down 22 per cent on the previous year and in-line with a downgraded forecast of between $530 million and $540 million the company gave earlier in the year.
Despite the profit slump, Treasury declared a final dividend of 8 cents per share, fully franked, taking its payout for the year to 28 cents per share, or 64 per cent of net profit.