Treasury Wine announces $395 million charge tied to US supply chain revamp
Australia's Treasury Wine Estates announced on Monday that it will record a $394.5 million post-tax charge in 2026 linked to the restructuring of its U.S. operations. This decision comes after the wine producer conducted a strategic and operational review of its Americas business in early June, which revealed excess capacity and high inventory levels due to declining demand.
The charge will consist of a non-cash write-down of U.S.-based assets and a further impairment of brands, including DAOU, Frank Family Vineyards, and Beaulieu Vineyard. Additionally, Treasury Wine Estates plans to reduce its inventory, primarily comprising bulk wine, by managing sales in bulk wine markets and internal reclassification.
Despite these charges, the Melbourne-based company anticipates unaudited earnings before interest, tax, SGARA, and material items (EBITS) for 2026 to be A$492.3 million, surpassing its previously stated guidance range of A$480 million to A$490 million.
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