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- Treasury Wine Estates (TWE) has updated its earnings expectations for FY20 as a result of the Coronavirus (COVID-19) outbreak
- TWE believes its previous projections of 5-10 per cent earnings growth will not be achieved
- It’s expected the downturn in Chinese consumption will last through March at least
- The company does not anticipate too big an effect in other markets – and should still deliver sustainable earnings growth
- TWE will provide a further update on its performance at the FY20 full-year results
- At Tuesday’s close of trade, TWE shares were down almost 4 per cent to $11.17
Treasury Wine Estates (TWE) has updated its earnings expectations for FY20 as a result of ongoing operational impacts from the Coronavirus (COVID-19) outbreak.
While the full impact is yet unpredictable, TWE believes its previous projections of 5-10 per cent earnings growth will not be achieved.
Chinese consumption has been significantly impacted through February, and the effects of the virus outbreak are expected to last through March at least.
Travel limitations and containment controls have impacted both TWE’s staff and its partnership network, including wholesalers, retailers and logistics providers.
While Chinese consumption has been sharply impacted, the company does not anticipate too big an effect in other markets – and should be able to reallocate resources away from coronavirus-affected areas to deliver sustainable earnings growth.
TWE will provide a further update on its performance at the FY20 full-year results.
At Tuesday’s close of trade, TWE shares were down 3.96 per cent to $11.17.
