7:19 PMBloomberg Markets
Treasury Wine Shares Soar After Moves to Tackle Excess US Supply
Summary
Treasury Wine Estates expects to record a A$558.4 million, or $395 million, post-tax writedown before releasing its full-year results. The charge reflects excess supply and broader supply-chain problems in its US market.
The writedown confirms that Treasury Wine's US inventory and distribution issues have become a material
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The charge signals that excess inventory is forcing a major reset in Treasury Wine's US business and will sharply reduce reported earnings.