Treasury Wine Estates (ASX: TWE) reported a challenging first half for fiscal year 2026, navigating market headwinds and a statutory net loss of $649.4 million.
The heavy loss was primarily driven by a $751 million non-cash impairment of its US-based assets, signaling a difficult period of recalibration for the global vintner.
Despite the statutory dip, the company's EBITS of $236.4 million landed within its guidance range, though it still represents a 39.6% decline compared to the previous period.
The downturn reflects adverse category trends in the US and China, coupled with deliberate moves to reduce customer inventory levels in these key regions.
Net sales revenue fell 16% to $1.30 billion, while gross profit margins squeezed slightly to 45.9%.
In a move to prioritise capital preservation and reduce leverage—currently sitting at 2.4x—TWE has made the difficult decision to suspend its interim dividend.
Looking ahead, management is leaning heavily into "Project Ascent," a transformation program designed to deliver $100 million in annual cost improvements over the next few years.
The company remains optimistic about the second half of the year, anticipating that the completion of distribution transitions in California and a leaner operating model will drive momentum.