Treasury Wine share price slides as dividends dry up

The Treasury Wine Estates Ltd (ASX: TWE) share price is slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $5.24. In morning trade on Monday, shares are swapping hands for $5.15 apiece, down 1.7%.

For some context, the ASX 200 is up 0.3% at this same time.

This follows the release of Treasury Wine’s half-year results (H1 FY2026).

Here’s what’s happening.

Treasury Wine share price slides on tumbling profits

Investors had been bracing for some tough figures from the wine company for the six-month period. As well they should.

Treasury Wine reported net sales revenue of $1.3 billion in H1 FY 2026, down 16% year on year.

And while earnings came within guidance of $225 million to $235 million, that’s unlikely to offer a lot of lift to the Treasury Wine share price today. EBITS came in at $236.4 million, down 39.6% year on year.

Management said earnings were impacted by adverse category trends in the United States and China, as well as restriction of shipments contributing to parallel import activity in China and cycling of prior year shipments.

And on the bottom line, the company reported a statutory net profit after tax (NPAT) loss of $649.4 million. That’s down from a $221 million profit in H1 FY 2025. The half-year loss was reported to be fuelled by post-tax material items loss of $751 million due to non-cash impairment of US-based assets, pre material items, and SGARA (self-generating and regenerating assets).

The Treasury Wine share price also looks to be under pressure, with the passive income tap being turned off. With the company operating in the red, management suspended the Treasury Wine dividend.

That means that FY 2026 will be the first year in more than a decade that stockholders won’t receive two dividends from the global wine company. In H1 FY 2025, Treasury Wine paid a partly franked dividend of 20 cents per share.

Treasury Wine said its near-term focus is on market execution, cash flow, and accelerating the benefits from its Project Ascent program, which aims to achieve $100 million in annual cost savings over two to three years.

The company forecasts better earnings in the second half of FY 2026.

What did management say?

Commenting on the results pressuring the Treasury Wine share price today, CEO Sam Fischer said, “Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth.”

Noting the company’s focus is “firmly on the future” to build a resilient long-term business, Fischer said:

TWE Ascent is the key enabler of this reset. It is a disciplined, multi-year transformation program designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date.

The post Treasury Wine share price slides as dividends dry up appeared first on The Motley Fool Australia.

More reading

• Treasury Wine Estates posts $649.4m loss, suspends dividend as transformation accelerates
• 5 things to watch on the ASX 200 on Monday
• Why Elevra Lithium, Pro Medicus, Sims, and Treasury Wine shares are roaring higher
• Why Treasury Wine shares are rising today
• I think these cheap ASX shares are strong buys this month

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.