By Mike Cherney

SYDNEY--Treasury Wine Estates Ltd. said its annual net profit fell by 25%, reflecting challenging conditions in the U.S. wine market and the global impact of the coronavirus pandemic.

The Australian vintner said its net profit was 316 million Australian dollars (US$226 million) in fiscal 2020, which ended in June. Net sales revenue fell by 6% to A$2.65 billion. Earnings before interest, tax and other items, or EBITS, fell by 22% to A$533 million.

The company declared a final dividend of 8 Australian cents per share, bringing the full-year payout to 28 cents per share. Last year's final dividend was 20 Australian cents.

Treasury said it couldn't provide earnings guidance for fiscal 2021, citing continuing uncertainty across key markets. However, it said there were positive signs of recovery in China, a big market for the company.

Treasury also said that it is exploring a possible sale of selected brands and assets in the U.S.

The company added that changes to its operating model and organizational structure should deliver savings of at least A$35 million in fiscal 2021 and beyond. It also said a restructure of its global supply chain should deliver annualized cost-of-goods-sold benefits of at least A$50 million by fiscal 2023.

"While we have recently seen positive signs of recovery across a number of our key markets and channels, we are cautious on the near-term outlook given the uncertainty that remains around the pace of that recovery," said Chief Executive Tim Ford. "We remain optimistic around our ability to return to sustainable profit and margin growth over the medium to long-term." 



  Write to Mike Cherney at mike.cherney@wsj.com