Treasury Wine Shares Slump as China Austerity Hits Earnings
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Treasury Wine Estates Ltd., the Australian maker of A$785-a-bottle ($686) Penfolds Grange, said first-half earnings fell as China’s crackdown on official gift giving curbed demand for premium vintages. The shares slumped by a record.
Profit before interest, tax and other items dropped to between A$42 million and A$46 million in the six months ended Dec. 31, from A$73.4 million a year earlier, the Melbourne-based company said in a regulatory filing based on unaudited figures.