Treasury Wine Estates Profit Drops 41.5% Amid US Slump

Treasury Wine Estates Ltd. reported a 41.5% decrease in full-year underlying profit for the fiscal year ending June 30, 2026, with earnings falling to A$275.3 million from A$470.6 million the previous year.

The decline was primarily driven by the company's Americas division, where soft demand in the United States and distribution disruptions resulted in excess inventory. Earnings from the Americas division dropped 61.4% to A$90.2 million, while net sales revenue in the region fell 21.2% to A$575 million.

In response to these losses, the company is conducting a strategic review and restructuring of the division. Treasury Wine Estates Ltd. recorded a A$1.12 billion impairment charge on its U.S. assets and an additional A$611.3 million charge related to the strategic review and efforts to rebalance its U.S. supply chain.