Treasury Wine Estates Ltd (TWE.AU) saw its shares drop sharply by 6.01% during intraday trading on Monday following the company's announcement of a non-cash impairment of its US-based assets.
The winemaker disclosed that it has adopted more conservative long-term growth assumptions for its Americas business, which could lead to a complete write-off of its Americas goodwill (valued at A$687.4 million as of June 30). The final impairment amount will be confirmed in its 2026 interim results.
This development follows the company's earlier withdrawal of 2026 earnings guidance and pause of a share buyback program, citing weak sales in China and US distribution challenges.