Treasury Wine Estates’ strategic reset has knocked the group to a A$1.1bn (£564m) loss, after the group wrote off A$1.3bn from its balance sheet.

The group’s overhaul of its US business – including the closure of vineyards and brands, and the disposal of inventory – made up the greatest part of the write-offs, worth A$558m the second half of the year alone.

The group announced in June it would cull over half of its brands in an effort to reorganise around three ‘power brands’ and seven ‘regional heroes’ in an effort to revitalise sales and profitability.

Sales fell 12.8% to A$2.6bn in the year to 30 June 2026, with revenue per case falling 1.4% at constant currency rates.

While the business remains profitable at an underlying level, its earnings before interest, tax, SGARA, and material items (EBITS) plummeted 16.1% to A$492.3m.

Treasury Wine Estates’ Americas business has proved a major drag on profits thanks to a weak market. The company told investors “all available options” were under review for the division’s brand portfolio, operating model and asset base. 

Treasury Wine Estates said its Ascent transformation programme was “progressing to plan”, with final details being drawn up for its new structure ahead of its transition to a regional operating model on 1 October. 

Under the plan, the group will reduce its portfolio from 76 to fewer than 30 brands.

Shares in Treasury Wine Estates have risen by more than a quarter over the past month to reach their highest level since early December 2025, as investors welcomed efforts to rebuild the group’s profits.