AusBN – Treasury Wine Estates has posted a $77.6 million profit for this year, having bounced back from a $100 million loss last year.
The company blamed last year’s loss on oversupply in the US market, sluggish Chinese demand and impairment charges and restructuring costs it had to pay.
In the year since it has reduced overhead costs by $40 million and announced plans to cut back its operational costs by a further $15 million in the coming year.
Treasury CEO Michael Clarke said he was focusing on shifting the company’s brand portfolio, which includes Wolf Blass, Lindeman’s, Penfolds and Yellowglen, towards the premium end of the market.
“We are continuing to invest in both our brands and our capability and our outlook for the region remains very positive,” he added.
“We have only just unlocked the opportunities of the Chinese market and investors can expect Japan and Korea to follow as we reshape and enhance our route to market in these regions.”