Aug 10 (Reuters) – Australia’s Treasury Wine Estates said on Monday it expects to take an additional A$558.4 million ($394.5 million) post-tax charge in 2026 related to the write-down of U.S.-based assets and brands.
The latest measures follow a strategic and operational review of the wine maker’s Americas business announced in early June, when the company said softer demand had left it with excess supply-chain capacity and elevated inventory levels.
Treasury Wine Estates, owner of luxury wine brand Penfolds, said the charge will include a non-cash write-down of U.S.-based assets and a further impairment of brands. The charge is incremental to an impairment recognised in the first half of 2026.
The brand impairment primarily relates to DAOU, Frank Family Vineyards and Beaulieu Vineyard following a review of asset carrying values as of June 30.
The Melbourne-based company said it would also write down inventory, predominantly bulk wine, which it expects to manage through sales into bulk wine markets and internal reclassification.
Despite the charges, Treasury Wine said unaudited earnings before interest, tax, SGARA and material items (EBITS) for 2026 were expected to be A$492.3 million, above the A$480 million to A$490 million guidance range provided at its investor day in June.
($1 = 1.4154 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Chris Reese and Lincoln Feast)
