Australia's Treasury Wine Estates posts 15.5% rise in annual profit

(Reuters) -Australia’s Treasury Wine Estates (OTC:TSRYF) reported a 15.5% rise in annual underlying profit on Wednesday, reflecting strong performance in its luxury portfolio, particularly Penfolds.

The country’s biggest wine producer posted underlying net profit after tax of A$470.6 million ($307.21 million) for the year ended June 30, which was higher than the A$407.5 million a year ago but missed Visible Alpha’s estimate of A$472.1 million.

The results underscore the growth in Treasury Wine’s luxury wine portfolio, which now generates around 55% of revenues, as well as the successful re-establishment of Penfolds and other products in China after Beijing lifted punitive tariffs.

The winemaker’s annual sales revenue climbed more than 7% to A$2.94 billion.

It announced a final dividend of 20 Australian cents per share, higher than 19 Australian cents apiece declared last year.

Treasury Wine also announced a buyback of up to A$200 million, which is to be completed progressively through fiscal 2026.

($1 = 1.5319 Australian dollars)