Before material items and assets are taken into account, net profits rose 8.3 per cent to $407.5 million. Overall revenue rose 12.9 per cent to $2.8 billion in the 2024 financial year thanks to price increases, with revenue per case ticking up 14.2 per cent.

Treasury announced a final dividend of 19¢ a share, bringing the full-year dividend to 36¢ a share.

Spin-off speculation

Investors appeared pleased with the update, with the share price closing 2 per cent higher at the end of Thursday’s session.

The company is rearranging its organisational structure and will combine its Treasury Premium (Squealing Pig, 19 Crimes, Pepperjack) and Treasury Americas portfolios in a move that has generated speculation of a potential spin-off or demerger.

“We think TPB global division formation could potentially enable a demerger catalyst,” said Jarden head of research Ben Gilbert in a note that described Treasury’s numbers as a “good result”.

Ford said there were a handful of brands that spanned both divisions. “It makes sense we have one single point of accountability driving those brands globally,” he said.

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”We’re also working on some global innovations that we would, in [the] current structure, sell through [both divisions] … From an effectiveness of bringing those to market, we think it makes sense to have it under one team, one leadership structure.“

Earnings from its Treasury Americas brands rose 13.1 per cent to $230.5 million, while Treasury Premium earnings declined 7 per cent to $76 million due to lower demand as well as underperformance of some brands.

“We’ll divest the commercial brands as we’ve announced as our first set and really work on running this premium business more effectively with this new model, and we’ll assess whatever we assess going forward.”

As the flagship brand, Penfolds remains a top performer. Its earnings increased 15.5 per cent to $421.3 million, boosted by demand in Hong Kong, Thailand and Taiwan. However, its earnings margin dipped slightly by 2.4 per cent to 42.1 per cent, which was attributed to higher costs involved in sending more shipments from Australia to China.

Its Penfolds brand and Treasury Americas division, which encompasses brands such as Matua, Beringer, Frank Family Vineyards, Stags’ Leap and the recently acquired Daou Vineyards, together account for 75 per cent of the company’s earnings.

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