Treasury Wine Estates : Appendix 4D and 2022 Interim Results

For personal use only

16 February 2022

ASX ANNOUNCEMENT

Appendix 4D and 2022 Interim Results

Treasury Wine Estates Ltd (ASX:TWE) has today released its interim financial statements for the half year ended 31 December 2021. Attached to this announcement are the Appendix 4D and half year financial statements.

For the purposes of ASX Listing Rule 15.5, TWE confirms that this document has been authorised for release to the market by the Board.

Contacts:
Media	Investors
Melissa O'Neill	Bijan Taghian
Tel: [phone]	Tel: [phone]
Mob: [phone]	Mob: [phone]

T R E A S U R Y W I N E E S T A T E S L I M I T E D

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L E V E L 8 , 1 6 1 C O L L I N S S T R E E T

M E L B O U R N E V I C 3 0 0 0 A U S T R A L I A

W W W . T W E G L O B A L . C O M

For personal use only

Appendix 4D

Treasury Wine Estates Limited

For the half year ended 31 December 2021

ABN 24 004 373 862

1. Results for announcement to the market

	Half year		Half year		% Change	Amount
	ended		ended		increase /	increase /
Key information	31 December	31 December		(decrease)	(decrease)
	2021		20201				$M
	$M		$M
Revenue from ordinary activities	1,299.3		1,424.2		(8.8)%	(124.9)
Profit from ordinary activities after tax attributable
to members of Treasury Wine Estates Limited	109.1		118.0		(7.5)%	(8.9)
Net profit for the period attributable to members of	109.1		118.0		(7.5)%	(8.9)
Treasury Wine Estates Limited
Earnings before interest, tax, SGARA and material	262.4		281.2		(6.7)%	(18.8)
items
				Half year		Half year
				ended		ended
Earnings per share				31 December	31 December
					2021		2020
				Cents per		Cents per
				share		share1
Basic earnings per share					15.1		16.4
Basic earnings per share, adjusted to exclude SGARA and material items			22.6		23.9

2. Dividends

On 16 February 2022, the Board determined to pay an interim dividend of 15 cents per share in respect of the half year ended 31 December 2021. Accordingly, this dividend is not provided for in the balance sheet as at 31 December 2021. The record date for determining an entitlement to receipt of the interim dividend is 3 March 2022 (AEDT) and the dividend is expected to be paid on 1 April 2022.

The Company's Dividend Reinvestment Plan will be in operation for the interim dividend. The last date for receipt of election notices for participation in the Dividend Reinvestment Plan is 4 March 2022 (AEDT).

	Dividends		Cents per	Franking
		share	%
	Interim dividend - half year ended 31	December 2021 (determined subsequent to	15	100
	balance date)
	Final dividend - year ended 30 June 2021	13	100
	Interim dividend - half year ended 31	December 2020	15	100

• Reported results restated for changes to accounting policies. Refer to note 2(c) for impacts.
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For personal use only

Appendix 4D

Treasury Wine Estates Limited

For the half year ended 31 December 2021

ABN 24 004 373 862

3. Financial statements

Please refer to pages 4 through 25 of this report wherein the following are provided:

• Directors' Report;
• Auditor's independence declaration;
• Consolidated statement of profit or loss and other comprehensive income for the half year ended 31 December 2021;
• Consolidated statement of financial position as at 31 December 2021;
• Consolidated statement of changes in equity for the half year ended 31 December 2021;
• Consolidated statement of cash flows for the half year ended 31 December 2021;
• Notes to the consolidated financial statements;
• Directors' Declaration; and
• Independent auditor's review report for the half year ended 31 December 2021.

4. Net tangible asset backing

		As at	As at
		31	31
	Net tangible asset backing per ordinary share	December	December
		2021	20201
		$	$
	Net tangible asset backing per ordinary	3.05	3.27
	share
	5. Associates and joint ventures
		As at	As at
		31	31
	Investments in Associates and Joint Ventures	December	December
		2021	2020
		$M	$M
	Investments accounted for using the equity method	-	2.5

Investments in associates and joint venture partnerships are accounted for in the consolidated financial statements using the equity method of accounting. The Group held a 50 percent investment in Fiddlesticks LLC, a company incorporated in the United States of America. On 16 November the Group divested its full 50% investment in Fiddlestix.

• Reported results restated for changes to accounting policies. Refer to note 2(c) for impacts.
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For personal use only

Appendix 4D

Treasury Wine Estates Limited

For the half year ended 31 December 2021

ABN 24 004 373 862

6. Further information

Additional Appendix 4D disclosure requirements can be found in the notes to the half-year financial report, the half year Directors' Report and the ASX announcement lodged on16 February 2022.

Further information can be obtained from:
Media:	Investors:
Melissa O'Neill	Bijan Taghian
Tel: [phone]	Tel: [phone]
Mob: [phone]	Mob: [phone]

TREASURY WINE ESTATES

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DIRECTORS' REPORT

For personal use only

Treasury Wine Estates Limited

Directors' report

For the half year ended 31 December 2021

The Directors present their report on the consolidated entity ("the Group") comprising Treasury Wine Estates Limited ("the Company") and the entities it controlled at the end of, or during, the half year ended 31 December 2021.

DIRECTORS

The members of the Board of Directors of Treasury Wine Estates Limited who held office during the half year and as at the date of this report are as follows:

Paul Rayner (Chairman)

Tim Ford (Chief Executive Officer)

Ed Chan

Warwick Every-Burns

Garry Hounsell

Colleen Jay

Antonia Korsanos

Lauri Shanahan

Louisa Cheang (retired 1 September 2021)

PRINCIPAL ACTIVITIES

The principal activities of the Group during the period involved the production, marketing and sale of wine.

OPERATING AND FINANCIAL REVIEW

Financial information in the Operating and Financial Review is based on the reviewed financial statements. Non- IFRS measures have not been subject to audit or review. The non-IFRS measures are used internally by management to assess the performance of the business and make decisions on the allocation of our resources.

A full review of operations of the Group during the half year is contained in the Australian Securities Exchange announcement dated 16 February 2022.

Throughout this review, constant currency assumes current and prior period earnings of foreign operations are translated and cross border transactions are transacted at current year exchange rates.

Net profit after tax attributable to members of Treasury Wine Estates Limited for the half year ended 31 December 2021 was $109.1 million (2020: $118.0 million) and reported earnings per share was 15.1 cents per share (2020: 16.3 cents per share).

Net sales revenue (NSR) decreased to $1,267.0 million (2021: $1,410.0 million), a decrease of 10.1% reflecting the divestiture of the US Commercial portfolio and the decline in shipments to Mainland China, partly offset by growth in Luxury and Premium portfolio.

Cost of goods sold (COGS) per case increased 9.5% reflecting the portfolio mix improvement, higher COGS from lower yielding vintages, and elevated global supply chain and logistics costs.

Cost of doing business (CODB) improved 8.5% to $255.3m, driven by lower overheads and brand building investment in Mainland China.

Earnings before interest, tax, SGARA and material items ("EBITS") of $262.4 million (2021: $281.2 million) is down by 6.7%. The Group's EBITS margin increased by 0.8ppts to 20.7%.

At 31 December 2021 a pre tax net loss of $(45.6) million has been recognised as material items in relation to the divestment of US brands and assets ($(25.8) million), the South Australian luxury winery expansion ($(5.9) million) and overhead and supply chain restructuring $(3.4) million and the acquisition of Frank Family Vineyards ($(10.4) million).

The SGARA loss for the period (AASB 141 Agriculture) was $(26.2) million (2020: $(11.9) million loss) reflects reduced intake from the Californian 2021 vintage and lower grape pricing in Australia, partially offset by the unwinding of losses associated with the 2018 and 2019 Californian vintage.

TREASURY WINE ESTATES

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