Stock Track | Treasury Wine Estates Soars 15.80% Intraday on Strong China Sales, Cost-Cutting Restructure

Stock Track
Apr 22

Treasury Wine Estates Ltd's stock soared 15.80% during intraday trading on Wednesday, following the release of several positive business updates.

The surge appears driven by robust third-quarter sales figures, particularly for its flagship Penfolds brand in China, where depletions surged 40%. The company also reported a 9.1% increase in U.S. depletions for the same period, indicating strong demand in key markets.

Concurrently, the winemaker announced a major operational overhaul, transitioning to a new regional operating model effective October 1, 2026. The restructure into four regional divisions aims to simplify the corporate structure, lower costs, improve accountability, and sharpen market execution. The company also secured A$300 million in new debt commitments to refinance upcoming maturities and bolster its liquidity position, which is expected to exceed A$1 billion by the end of fiscal 2026.

Management reaffirmed its financial outlook, expecting second-half earnings (EBITS) to be higher than the first half and expressing confidence in its ability to return leverage to its target range of 1.5-2.0x.

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