By Stuart Condie
SYDNEY–Treasury Wine Estates expects 55% of its fiscal 2024 earnings to come in the second half as it prepares for a possible review by China of tariffs on Australian wine.
The ASX-listed producer on Monday said that earnings before interest, tax and other items, or so-called Ebits, for the 12 months through June 2024 would likely split 45%-55% between the December and June halves.
The split results from Treasury’s previously announced decision that the timing of Penfolds shipments across all markets should be determined in part to maintain distribution and pricing flexibility.
“This is a specific strategy in light of the potential for a future review of tariffs on Australian wine in China,” Chief Executive Tim Ford said in written remarks to be delivered at Treasury’s annual general meeting.
China is Australia’s largest trading partner and was a lucrative market for local wine producers prior to the 2021 imposition of tariffs that decimated exports and created a local glut of premium wine.
China imposed swingeing tariffs amid deteriorating diplomatic relations. Treasury is hoping a recent thaw in relations, which has included the lifting of barley tariffs and last week’s release of an Australian journalist from more than three years in detention, could prompt a review.
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