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Treasury Wine Estates Limited (ASX:TWE) says consumer demand for luxury products and wine in China is slowing.
The owner of the Penfolds and Wolf Blass brands also says the current financial year will be challenging as it continues to sort out an excess of stock held by distributors in its key United States market.
Treasury Wine's decision to dispose of that excess wine cost it $153.4 million in the 2013 financial year, and led to the exit of chief executive David Dearie.
Interim chief executive Warwick Every-Burns told the company's annual general meeting that earnings in fiscal 2014 would be strongly influenced by the success of ongoing efforts to reduce excess stock in the US.
Other factors, including the volatility of the Australian dollar, would also impact earnings.
Treasury Wine Estates generated a net profit of $42.7 million in fiscal 2013.
(20min delay)