Treasury Wine Estate’s (TWE) net sales revenue decreased by 12.8 per cent to approximately £1.3bn, due to reduced shipments across all divisions.

The company’s gross profit went down by 18.1 per cent to around £611.9m, which was driven by a decline in the Americas region, where there was a softer segment demand in 19 Crimes. In Australia and Europe, declines were driven by the commercial brands.

TWE reported a net loss of approximately £563.4m, which includes a major expense related to the costs of accelerating the rebalancing of the US supply chain.

The business forecasted FY27 EBITS to be equivalent to FY26, with expectations for continued declined growth on key brands as inventory rebalancing is completed in China.

Moving forward, the company has begun a strategic and operational review in the Americas with advisors appointed to support the assessment of all the options across the brand portfolio.

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Additionally, the company plans to execute a turnaround business strategy, the Ascent transformation programme, with an approximately £52.3m cost reduction target by the end of FY29.

TWE is set to finalise the new organisational structure ahead of transition to the regional operating model on 1 October 2026.

TWE’s CEO Sam Fischer said: “FY26 was a year of decisive action and significant change for Treasury Wine Estates. While our financial performance reflected evolving market conditions and the proactive measures to ensure brand and channel health, we made substantial progress towards reshaping the business for long-term success.

“We are also making strong early progress in aligning our supply chain to our vision for a simpler TWE and accelerating initiatives to improve performance in the Americas.

“While there is more to do, we are confident these initiatives will position TWE for improved and sustainable growth over time.”