First Impression: Treasury Wine Estates (TWE) FY16 Result

Total Volume up 11.5% to 33.6m 9L cases | Rebound in ANZ: 2H16 sales decreased 2% but EBITS was up 13%. Luxury volume growth was 26% for the full year FY16 | Americas momentum looks soft: Americas 2H16 revenue, including Diageo, increased 27%. Excluding the acquisition revenue was up an estimated 2% in local currency terms | Asia volume growth slower: In Asia, 2H16 sales fell 2% with EBITS up only 9%. Asia revenue per case fell to $115 in 2H16 from $125 per case in 2H15 | Diageo integration going well: The company was able to withdraw unprofitable volume from the US market with an EPS neutral result in 2H16. Management upgraded synergy targets by US$10m to US$35m by FY20e | Net operating cash flow up 137% to $416.8m ( partly driven by lower cash tax payments and FX benefits).