Chinese market helps major Australian wine producer post a profit

Leading Australian wine producer Treasury Wine Estates (TWE) reported an increase in its annual profit on Wednesday, with strong performance in its Penfolds range, amid a stabilization of exports to the major Chinese mainland market.

The winemaker posted underlying net profit after tax of A$470.6 million ($307 million) for the year ending June 30, a 15.48 percent growth compared with A$407.5 million ($265.7 million) a year ago, according to a company statement.

"Penfolds delivered another strong result, reflecting a successful return to China for the Australian country of origin portfolio and continued positive momentum in a number of other key Asian markets," TWE Chief Executive Officer Tim Ford was quoted as saying.

Ford added that TWE "continued to face headwinds in a number of markets" but "remained laser-focused on executing our business plans, further strengthening the business for long-term growth and achieving strong financial performance, underpinned by Penfolds' continued momentum".

In the 12 months to June this year, Australian wine exports rose by 13 percent in value to A$2.48 billion ($1.62 billion) and 3 percent in volume to 639 million liters, according to the Wine Australia statutory body.

The year-on-year increase in exports was "almost entirely driven" by the Chinese mainland market "after tariffs on Australian bottled wine were removed at the end of March 2024", Wine Australia analyst Peter Bailey said in a statement.

"The quarter ended June 2025 was 35 percent smaller in value than the same quarter in the previous year," Bailey said, adding that it indicated the level of exports to the Chinese mainland may be normalizing after the initial re-stocking phase.