Dec 1 (Reuters) – Australia’s Treasury Wine Estates said on Monday it expects to recognise a non-cash impairment of its U.S.-based assets, with all A$687.4 million ($450.25 million) of its goodwill for the region likely to be written off, sending its shares to their lowest in more than a decade.
The write-down comes after adopting more conservative long-term growth assumptions for its Americas business, the company said.
Shares of the country’s largest standalone winemaker fell as much as 6.4% to A$5.45 in early trade, touching their lowest level since August 2015. The broader benchmark S&P/ASX 200 index was largely flat as at 2331 GMT.
The final impairment amount and allocation to assets will be concluded as part of its 2026 interim results, the winemaker said.
Treasury in its annual report said an 11% annual reduction in future cash flows in the Americas business would reduce impairment capacity to zero.
While larger brands including DAOU, Frank Family Vineyards and Matua continue to outperform the market, Treasury has adopted more conservative long-term market growth assumptions, it said on Monday.
The stricter assumptions will reduce long-term earnings growth rates, impacting results within the Treasury Americas and Treasury Collective – Americas units, it added.
The company expects the impairment to result in at least a complete write-off of Americas goodwill, which stood at A$687.4 million at June 30, with potential to impact other assets.
Treasury in October withdrew its earnings guidance for 2026 and paused an A$200 million share buyback, citing weak sales of its flagship Penfolds wines in China and distribution challenges in the United States.
($1 = 1.5267 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru; Editing by Edmund Klamann, Chris Reese and Lincoln Feast)
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