July 9 (Reuters) - Treasury Wine Estates Ltd (TWE) : FOR F20,...

July 9 (Reuters) - Treasury Wine Estates Ltd (TWE) :

• FOR F20, TWE EXPECTS EBITS TO BE BETWEEN $530M AND $540M
• FOR F20, TWE EXPECTS EBITS TO BE BETWEEN $530M AND $540M
• F20 CASH CONVERSION IS EXPECTED TO BE HIGHER THAN 80%
• F20 EBITS HAS DECLINED AGAINST PRIOR YEAR BY ABOUT 21% FOR GROUP
• TWE WILL NOT PROVIDE EARNINGS GUIDANCE FOR F21 AT THIS POINT IN TIME
• IN CHINA, CONTINUES TO SEE POSITIVE SIGNS OF BOTH CONSUMPTION AND SALES DEPLETION RECOVERY
• COMPLETED IMPLEMENTATION OF CHANGES IN US BUSINESS WHICH WILL DELIVER ANNUALIZED COST SAVINGS OF AT LEAST $35M IN F21
• STRONG LIQUIDITY POSITION SUPPORTS MAINTENANCE OF LONG-TERM DIVIDEND POLICY; TARGETS A PAY-OUT RATIO BETWEEN 55-70% OF NPAT
• PUT IN PLACE ACTIONS AND PLANS TO CARRY FORWARD UNSOLD WINE PREVIOUSLY ALLOCATED TO 2H20
• PUT IN PLACE ACTIONS FOR REALLOCATION OF LUXURY WINE PREVIOUSLY ALLOCATED TO F21 & BEYOND INTO FUTURE YEARS
• COST IMPACTS FROM AUSTRALIAN VINTAGE EXPECTED TO LEAD TO HIGHER COMMERCIAL AND MASSTIGE COGS IN F21
• ON POTENTIAL DEMERGER OF PENFOLDS, VALIDATED THAT VALUE WILL BE CREATED THROUGH SEPARATE FOCUS FOR BOTH PENFOLDS & OTHER BRANDS
• COST IMPACTS FROM AUSTRALIAN VINTAGE TO IMPACT ALL OF TWE'S SALES REGIONS, BUT WILL BE MOST NOTABLE IN ANZ AND EMEA
• REMAINS CAUTIOUS ON SHORT TO MEDIUM TERM OUTLOOK
• ON POTENTIAL DEMERGER OF PENFOLDS, OPTIONALITY EXISTS INCLUDING A POTENTIAL DEMERGER BY END OF CY 2021
• WORK STARTED ON RESTRUCTURING GLOBAL SUPPLY CHAIN COST BASE, WHICH WILL SUPPORT LOWERING COGS PER CASE OVER TIME

Source text https://reut.rs/2ZNMDI8

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