Treasury Wine Estates Ltd.’s full-year earnings fell by more than a third as the company battled a global downturn in alcohol consumption and supply concerns in China and the United States. The Australian winemaker, producer of the Penfolds brand, reported a 36.1% decline in its key EBITS performance metric – earnings before interest, tax and a measure to smooth the volatility of agricultural valuations. At A$492.3 million ($348 million) for the year ended June 30, the earnings were slightly ahead of analysts’ expectations.

The decline reflects weaker demand and logistical constraints in key markets such as China and the United States, impacting sales and margins for the company. Despite the drop, the results remain above some analyst forecasts, suggesting resilience amid broader industry headwinds. Analysts will watch for signs of recovery in China and U.S. markets as Treasury Wine seeks to stabilize performance in the volatile alcohol sector.