After going through 2018 with strong results, Treasury Wine Estates Ltd’s [ASX:TWE]shares have maintained a healthy position.
This morning shares grew by 2.20%.
Net profit after tax was up by 37% at the start of the year.
Treasury Wine’s US market has displayed a vast amount of growth, and positive results across its distribution channels.
These results were due to transformational changes, implemented overseas, which were purposed to drive further portfolio growth.
This helped Treasury Wine gain new distributor partners in more American states.
Performance delivers substantial growth and healthy margin
CEO Michael Clarke was pleased to report a great result for the first half of 2018.
All regions displayed strong growth throughout the year, outperforming expectations.
With Diageo’s Wine supply chain (an independent branch of the company) now complete, the company can focus on further supplying more opportunities for other areas of the business.
In the Treasury Wine’s financial report, CEO Michael Clarke stated:
‘Performance was delivered sustainably, with all regions contributing to EBITS growth and margin accretion. “Fixed” regions, Asia, Europe and ANZ, are outperforming expectations, and we are now taking some exciting steps to really transform our route-to-market in the United States, and further strengthen the long-term outlook for the Americas region.’
The American region wasn’t the only area displaying a great amount of performance.
North Asia grew by 60% while Southeast Asia, the Middle East and Africa are up 15%.
Due to further investments in sales and marketing, regions such as China were able to display sound levels of growth.
Despite experiencing a drop is share value last week due to issues with trading, Treasury Wine was able to properly maintain its position with its strong results gained throughout the year.
For Markets & Money
PS:Interest rates could hover at these super-low levels for the next 100 years…but this four-pronged strategy could help you avoid the fallout. Download your free report, ‘Why Interest Rates Could Stay Low in the 21st Century…and How You Can Profit’, today.