Treasury Wine Estates today released its full year results, with CEO Tim Ford confident of the company’s “capability to navigate future challenges and uncertainty”, despite two years of significant change.

TWE financial year 2022 results showed a 3.6% decline in net sales revenue brought about by a drop in global commercial portfolio volumes and crippling tariffs essentially cutting off access to the mainland China market.

But TWE’s reported earnings before interest and taxes grew 3% to $523.7m.

The Australian winemaking and distribution business also performed well across each of its brand portfolio divisions, all of which delivered underlying earnings growth and margin expansion.

A 16.1% uptick in net sales revenue per case was driven by the company’s focus on premiumisation, with the Premium and Luxury portfolios contributing 83% to total net sales, up from 77% in financial year 2021.

Penfolds reported an 8% drop in earnings before interest and taxes, due primarily to Chinese tariffs. Excluding mainland China, the brand’s earnings increased by almost half (45%). In Asian markets outside of mainland China, net sales revenue more than doubled, reporting growth of 106%.

Treasury Americas reported a 21% increase in EBITS to $185.6m, and the priority brand portfolio continued to perform strongly with net sales revenue increasing 15% in the year on a constant currency basis, led by standout growth from brands including Beringer, Stags’ Leap, Matua and 19 Crimes.

The company’s premium brands, led by priority labels including 19 Crimes, Pepperjack, Squealing Pig and Wynns, reported a 27% increase in earnings before interest and taxes to $79.6m.

On today’s results announcement, TWE’s Chief Executive Officer Tim Ford commented: “Relentless execution of our F22 priorities resulted in strong operating and financial performance in each of our brand portfolio divisions. Pleasingly, we have returned to delivering margin accretive earnings growth in a year where we managed through the effective closure of the Mainland China market, materially reshaped our Treasury Americas division and navigated a global macroeconomic backdrop that included the global pandemic, significant supply chain disruptions and inflationary cost pressures.

“The results we have announced today reflect the fundamental strengths of our diversified global business, the flexibility of our operating model and the outstanding execution capability of our teams. After two years of significant change, we enter F23 with momentum, focused on our objectives of delivering quality earnings growth, efficient capital utilisation and sustainable shareholder returns.

“Our recent track record of successfully adapting our business to deliver growth, despite a number of challenges, gives me great confidence in the fundamental strengths of our business and our capability to navigate future challenges and uncertainty.”