Bottles of Yellowglen sparkling wine, produced by Treasury Wine Estates Ltd., are served at a bar in Melbourne, Australia.

(Bloomberg) -- Shares in Treasury Wine Estates Ltd. dropped to a 10-year low after the Australian vintner scrapped its earnings guidance for the 2026 financial year and paused a planned share buy-back due to uncertain outlooks in two of its major markets.

Most Read from Bloomberg

Newsom Stares Down LA Revolt in New California Housing Fight HUD Issues Layoff Notices, Targeting Fair Housing Staff With Deep Cuts Billionaire Caruso Says He No Longer Builds in LA Due to Prices Mapping a Way Out of the US Housing Affordability Crisis The Secret to Vancouver’s Public Transit Ridership Recovery

The producer behind the iconic Penfolds brand cited lower-than-expected stock depletions in China throughout September, adding in a statement Monday that if the trend continued then “depletions targets for F26 in China are unlikely to be achieved.” The winemaker’s share price fell by as much as 14% on Monday morning, to the lowest since September 2015.

Meanwhile, a distributor transition in California was impacting Treasury Americas’ performance, meaning it was no longer “appropriate to retain the guidance for modest EBITS growth in Treasury Americas in the year” to June 30, it said.

The announcement highlights the difficulties facing new Chief Executive Officer Sam Fischer, who is due to take over from outgoing head Tim Ford later this month. Treasury’s share price is sitting close to a 10-year low; Monday’s announcement came before the market opened in Sydney.

Investors had been hoping that the removal of trade barriers to Australian wine imports into China in 2024 would lead to strong sales growth in the important market. However, consumption has been lower than hoped, partly due to official guidance issued by the Chinese government banning alcohol from official banquets.

Treasury’s planned A$200 million ($130 million) share buy-back has now been paused after being 15% completed, it said. “As a result of the uncertain outlook in relation to Penfolds and Treasury Americas, TWE has formed the view that it is no longer appropriate to retain its guidance for EBITS growth at a group level” for the 12 months, it added.

--With assistance from Karen Leigh.

(Updates with share price move)

Most Read from Bloomberg Businessweek

‘I Believe It’s a Bubble’: What Some Smart People Are Saying About AI A Shipwreck Killed 41 Crew and 5,900 Cattle. The Brutal Business Behind It Goes On How Din Tai Fung Became America’s Top-Earning Restaurant Chain Did Wall Street Just Admit It’s a Casino After All? Drilling Frenzy Arrives in Canada’s Pristine Wilderness

©2025 Bloomberg L.P.

View Comments