Treasury Wines (TWE) delays Penfolds demerger
Treasury Wines (TWE) -8.19%
The wine distributor fell on the day of its AGM with the company battling a number of complex issues. A few factors that contributed to the fall include the delay to the Penfolds demerger, Chinese investigations and US restructuring. Treasury was looking to spin out the premium Penfolds brand by the end of next year, but as it works through COVID, US restructuring and more pressure from China. The US restructure remains on track with the company looking to offload a few smaller brands while taking on a smaller vintage this year to handle oversupply in the region but still looking at a similar level of earnings.
China remains a big concern for investors with Australia firmly in the cross hairs on trade and wine seen as an easy target. TWE has been responding to a range of requests for information from the Chinese Ministry of Commerce on allegations of dumping allegations, though TWE stated they remain committed to the region and fully co-operative. Shares traded to a 4 year low today, and looks under pressure still.
Treasury Wine (TWE) Chart
