Treasury Wine Estates Announces A$558.4 Million US Writedown

Treasury Wine Estates Ltd. announced a A$558.4 million ($395 million) post-tax writedown to resolve supply chain disruptions and excess inventory in the United States. The move follows a review of US operations launched in June by CEO Sam Fischer.

To combat softening demand and restore profitability in the Americas region, the company will sell a portion of its inventory into bulk wine markets and reduce the size of its US North Coast vintages beginning in 2026. Treasury Wine also reported unaudited earnings before interest, tax, and agricultural valuation smoothing of A$492.3 million, which slightly exceeded previous guidance.

Company shares rose to an eight-month high following the announcement, increasing by as much as 7.9%.