Treasury Wines Estates Ltd (ASX: TWE) shares have opened 3% higher this morning following its Annual General Meeting (AGM).
Treasury Wine is a $13 billion world leader in wine making and brand marketing with operations around the world. It’s highly likely you have heard of and sampled some of its brands including Lindeman’s, Pepperjack, Penfolds, Rosemount, Wolf Blass, Yellowglen and more.
AGM Comments
Chairman Paul Rayner opened the AGM by saying that TWE “delivered yet another year of high-quality financial results, affirming our commitment to delivering against our Company strategy, as the world’s only truly global wine business” and that “Penfolds was again recognised as the World’s Most Admired Brand in 2019 by Drinks International.”
CEO Michael Clarke then provided a summary of the company’s previously announced FY19 result which saw net sales revenue (NSR) increase by 17% to $2.83 billion.
He then commented on the 5 year performance of the business, saying Treasury Wine has “achieved a five-year CAGR of 30%, and that Return on Capital Employed has more than doubled. Finally, from a total shareholder perspective, we have delivered a return of more than 300% over the past five years.”
FY20 Guidance
At the end of his speech, the CEO provided a brief closing comment regarding FY20 guidance saying, “in closing, I’d like to report that we are pleased with our first quarter and we re-affirm our guidance of 15% to 20% reported EBITS growth in fiscal 20.”
Is The Treasury Wine Share Price A Buy?
With the share price up ~25% in 2019, investors seem confident in the business. This wasn’t the case a few month ago when the company faced a short attack from GMT Research.
Treasury Wine seems to have defied the critics and with the company forecasting continued growth, it may be one to watch. At the current share price, I don’t have a strong opinion either way and if you feel the same, you may be more interested in the growth shares in the free report below.
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Disclosure: At the time of writing David does not have a financial interest in TWE.
