Which billionaire has upped his stake in Treasury Wine Estates?

French billionaire Olivier Goudet has increased his stake in Treasury Wine Estates Ltd (ASX: TWE) to 7.13% after tipping another $41.7 million into the company since mid-January.

Treasury shares jumped when it first emerged that Mr Goudet had spent about $226 million buying into the struggling wine company, with the stock adding 10% in the couple of days after the news was announced in late December.

Treasury Wine shares have continued to slide since then however, falling from $5.39 on December 24 to be changing hands for $4.55 currently.

A new announcement to the ASX on Tuesday shows Mr Goudet’s company has been buying up stock since January 19.

Wheeler and dealer

Mr Goudet’s interest is of note, given his background in Europe as a buyer and seller of high-profile brands.

He is well known in European business circles as the former head of JAB Holding, which managed the wealth of Germany’s Reimann family.

While in that role, Mr Goudet spearheaded the takeover of companies including Krispy Kreme and Pret a Manger, and according to a report in The Australian, he also personally bought a chateau in Bordeaux with his wife in 2021.

Mr Goudet, who was also the former Chief Financial Officer at Mars, stepped down from JAB Holding in 2023.

Mr Goudet is getting his new shares at a relative bargain, with Treasury Wine shares well down on their highs of $10.88 over the past year.

Tough times in the wine trade

Treasury in mid-February announced half-year EBITS of $236.4 million, which was a 39.6% decline on the previous corresponding period, and a net loss of $649.4 million, including $751 million in non-cash write-downs of its US assets.

The company suspended its interim dividend to preserve capital, and reiterated that it had started strategic actions “to maintain brand strength and healthy sales channels across key markets, with reducing customer inventory holdings in the US and China a priority”.

Treasury Chief Executive Officer Sam Fischer said at the time:

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. Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term. 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. Encouragingly, we are seeing our key brands continue to perform in the marketplace and resonate strongly with consumers, reinforcing confidence in the strength of our portfolio and our ability to deliver improved performance as we execute the transformation of the business.  

The post Which billionaire has upped his stake in Treasury Wine Estates? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.