Strong performance in China has pushed Treasury Wine Estates' (ASX: TWE) results to new levels.
The company delivered its strongest organic net sales revenue ('NSR') growth rate in its history during the first half of FY19.
NSR was up 16 per cent to $1,507.7 million, whilst its NPAT was up 17 per cent to $219.2 million.
Earnings were up across all regions, but the company's results were especially buoyed by its Chinese operations.
Asia reported a 31 per cent earnings growth to $153.1 million, with NSR growth of 32 per cent.
The company says the region is especially interested in its luxury wines and it intends to continue expanding its distribution there in the future.
French wines are apparently popular TWE choices for the Chinese, accounting for 30 to 40 per cent of the market.
Earnings in Asia of $153.1 million compares to $77.4 million in Australia and New Zealand, $112.1 million in the Americas, and $26.3 million in Europe.
Chief executive officer Michael Clarke says the company's record growth has been impressive.
"I am very proud to see the foundation established in the previous years continuing to deliver sustainable growth, as shown by yet another strong set of financial results for the group," says Clarke.
Looking forward the company says it has increased availability for its luxury wines and is developing new products to add to its already strong offering which includes Penfolds, 19 Crimes, Acaia, Beringer, and Pepperjack.
Shares in Treasury Wine Estates are up 1.25 per cent to $17.01 per share at 11.44am AEDT.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support