News: TWE UPDATE 1-Australia's Treasury Wine annual profit tumbles on virus blow

(Adds performance metrics, CEO comment)

Aug 13 (Reuters) - Australia's Treasury Wine Estates (TWE) on Thursday reported a 36% plunge in annual profit, as the coronavirus-related restrictions hit key sales channels for its high-margin luxury wine.

The curbs imposed in its major markets on social gatherings and occasions - drivers of luxury wine consumption - have compounded the financial troubles of the vintner, already hard-pressed by steep competition and the growth of private labels, especially in the United States.

Full-year core earnings from its Americas business, its biggest revenue generator, declined 37% to A$147.3 million.

Work to explore a potential divestiture of selected brands and assets in the United States was ongoing, the company said on Thursday, months after disclosing plans to shrink its low-end commercial division in the country.

Treasury Wine has also said it may spin off its cash cow Penfolds label to shore up its profit amid the virus upheaval.

The world's largest standalone winemaker said profit attributable to shareholders declined to A$260.8 million ($186 million) for the year ended June 30, from A$408.5 million a year earlier. It also missed a forecast of A$290.9 million, according to Refinitiv data.

"While we have recently seen positive signs of recovery across a number of our key markets and channels, we are cautious on the near-term outlook given the uncertainty that remains around the pace of that recovery," Chief Executive Officer Tim Ford said in a statement.

Despite the drop in earnings, Melbourne-based Treasury Wine declared a final dividend of 8 Australian cents per share, lower than the 20 Australian cents a share declared last year.

($1 = 1.3966 Australian dollars)