Business Summary Treasury Wine Estates Limited (TWE) is a global wine company with an international portfolio of wine brands and viticultural assets. TWE's wine portfolio includes wine brands: Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate and more. The Company owns over 13,000 hectares of vineyards, with more than 3,000 winemakers, viticulturists, sales, distribute and support staffs. TWE wine is sold in more than 100 countries around the world. Australia & New Zealand Wine (ANZ): The business is responsible for the manufacture, sale and marketing of wine within Australia and New Zealand. TWE continues to be the supplier of premium wine brands to the region. Europe, Middle East and Africa (EMEA): The business is responsible for the sale and marketing of wine within the EMEA region, with a dominant market in United Kingdom. The EMEA region includes the UK, Continental Europe, the Middle East and Africa, as well as key Nordic markets such as Sweden, Finland and Norway. Americas: This market of TWE including US, Canadian, Latin American and Caribbean. The business is responsible for the manufacture, sale and marketing of wine within the Americas region. Asia: The business is responsible for the sale and marketing of wine within the Asia region. TWE sells masstige and luxury wines throughout Asian markets which are Singapore, Hong Kong, Malaysia, Thailand, China, Japan, Taiwan and Korea. Latest Research A Bitter Year, But Will Next Year Be Better? Multiple hits to earnings — Treasury Wines has provided guidance for FY20e EBITS of $530-540 million. The guidance means that 2H20e EBITS was down 50%. We expect 1H21e to fall 25%, but 2H21e should start a recovery. The combination of a weaker on-premise channel, lower luxury wine intake and likely brand exits keeps us cautious. We lower our EPS forecasts by 4%-8% over the next three years. For more information see research 10 Jul 2020. GICS - Food/Beverage/Tobacco Treasury Wine Estates Limited ASX Code: TWE Price: $10.66 12 Mth Target Price: $10.90 Rating: Neutral Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 6 August 2020 $7,684m 720.8m $19.47 $8.40 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Neutral $10.90 2.2% 3.0% 5.3% Investment Fundamentals FYE 30 Jun 2019A 2020F 2021F 2022F Profit $m 422.0 318.0 322.0 383.0 Profit (norm)* $m 422.0 318.0 322.0 383.0 EPS* ¢ 58.0 44.0 45.0 53.0 EPS Growth % 18.4 -24.1 2.3 17.8 P/E* x 18.4 24.2 23.7 20.1 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 38.0 20.0 25.0 36.0 Yield % 3.6 1.9 2.3 3.4 Franking % 88.0 100.0 75.0 75.0 * Adjusted for goodwill and unusual items Source: Based on Citi estimates Share Price Chart Total Return on $10,000 Investment
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Treasury Wine Estates Limited ASX Code: TWE …...Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 18 June 2020 $7,972m 720.8m $19.47 $8.40 Rating Rating 12 Mth
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Business SummaryTreasury Wine Estates Limited (TWE) is a global wine company with aninternational portfolio of wine brands and viticultural assets. TWE's wineportfolio includes wine brands: Penfolds, Beringer, Lindemans, Wolf Blassand Rosemount Estate and more. The Company owns over 13,000 hectaresof vineyards, with more than 3,000 winemakers, viticulturists, sales, distributeand support staffs. TWE wine is sold in more than 100 countries around theworld.
Australia & New Zealand Wine (ANZ): The business is responsible for themanufacture, sale and marketing of wine within Australia and New Zealand.TWE continues to be the supplier of premium wine brands to the region.
Europe, Middle East and Africa (EMEA): The business is responsible forthe sale and marketing of wine within the EMEA region, with a dominantmarket in United Kingdom. The EMEA region includes the UK, ContinentalEurope, the Middle East and Africa, as well as key Nordic markets such asSweden, Finland and Norway.
Americas: This market of TWE including US, Canadian, Latin American andCaribbean. The business is responsible for the manufacture, sale andmarketing of wine within the Americas region.
Asia: The business is responsible for the sale and marketing of wine withinthe Asia region. TWE sells masstige and luxury wines throughout Asianmarkets which are Singapore, Hong Kong, Malaysia, Thailand, China, Japan,Taiwan and Korea.
Latest ResearchA Bitter Year, But Will Next Year Be Better?
Multiple hits to earnings — Treasury Wines has provided guidance forFY20e
EBITS of $530-540 million. The guidance means that 2H20e EBITS wasdown 50%. We expect 1H21e to fall 25%, but 2H21e should start arecovery. The combination of a weaker on-premise channel, lower luxurywine intake and likely brand exits keeps us cautious. We lower our EPSforecasts by 4%-8% over the next three years.
Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
6 August 2020$7,684m720.8m$19.47$8.40
RatingRating12 Mth Target Price
Capital GainGross Yield
Implied Total Return
Neutral$10.902.2%3.0%5.3%
Investment FundamentalsFYE 30 Jun 2019A 2020F 2021F 2022F