By Stuart Condie

SYDNEY--Treasury Wine Estates Ltd. expects full-year earnings to fall by as much as 20% due to the impacts of the coronavirus on sales.

The Australia-listed producer said Thursday it believes earnings before interest, tax and other items--or Ebits--for the 12 months to June 30 will be between 530 million and 540 million Australian dollars ($US370.0 million-US$377.0 million). Treasury Wine reported FY 2019 Ebits of A$662.7 million.

Its Americas business has been hit hardest, Treasury Wine said in a filing to the Australian Securities Exchange, with a 37% fall in Ebits. Australian and New Zealand Ebits fell by 16%, Europe, the Middle East and Africa by 18%, and Asia by 14%.

Nonetheless, the company said its strong liquidity position, with cash on hand of approximately A$448 million and undrawn committed debt facilities of A920 million, supported its long-term dividend policy of paying out 55%-70% of net profit.

The company in February reported a first-half net profit of A$211.4 million.

With drought and summer bushfires having affected the Australian wine industry, Treasury Wine said extreme heat had hit volumes and raised costs for its 2020 Australian vintage. Total intake was approximately 30% lower on-year, it said.

Treasury said it still believed a demerger of its Penfolds premium brand could create value, with a demerger by the end of the 2021 calendar year among its options.

It added it had completed operating model and organization structure changes in the U.S., which are expected to deliver annualized cost savings of at least A$35 million in fiscal 2021. The potential divestiture of certain U.S. wine brands and assets, as well as a supply chain restructure, are being considered, it said.

Treasury Wine shares last traded at A$11.28, down 31% in 2020. 



  Write to Stuart Condie at stuart.condie@wsj.com