Wine company Treasury Wine Estates (TWE.AX) jumped 11.5% as profits more than doubled to $179.4 million (compared to $77.6m in the same period last year) as Asian demand continues to drive robust growth for the company. TWE has been one of our strongest holdings in our Australian Model portfolio, with its shares up +98% since we bought it in September last year. TWE offers investors an attractive play on the gentrification of the Asian pallet. Growth remains strong in this sector and we expect the momentum to continue over the longer term.
Revenues also jumped, up 20% on reported currency basis to $2.2 bn (constant currency rose $13%). The company reported a dividend of 0.12 cents a share bring the full year payout to 20 cent s a share, up 6% from last year. The company has altered its strategy over the past 3 years, shifting to a luxury and prestige wine focus. It sold off/exited its lower margin lines and focussed its efforts through its Penfolds, Wolf Blass and newly acquired...
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