Bottles of Australian wine on the shelf of a supermarket in Beijing on August 18, 2020 Photo: VCG

Australian wine brand Penfolds released its fiscal year 2025 results on Wednesday, with its return to the Chinese market being an important driver for growth.

In the FY25 results that the company shared with the Global Times on Wednesday, it said that Penfolds delivered another strong result, reflecting a successful return to China for the Australian country of origin portfolio and continued positive momentum in a number of other key Asian markets.

Penfolds reported a 13.2 percent increase in EBITS to A$477 million ($313 million). The company said that the result was driven by strong growth in Bin & Icon portfolio shipments to China as part of the return of the Australian COO portfolio to that market, partially offset by lower shipments to other key markets, as allocations were managed in the period to support China growth.

Speaking at the TWE 2025 annual report, TWE CEO Tim Ford said that Penfolds performance was once again a highlight, reflecting the successful expanded distribution of our Australian portfolio in China and continued positive momentum in other key Asian markets.

"We were delighted to acquire a 75 percent equity interest in China's Ningxia Stone & Moon Winery Co. Ltd. during the year. This investment reinforces our long-term commitment to China and supports the future growth of our China-sourced portfolio through an efficient and scalable production model," Ford said, noting that the company also builds on TWE's existing partnerships in China, enhancing its presence in the market to develop a deeper connection with local consumers.

Compared with the same period last year (FY24), China's wine category value in FY25 fell 4.9 percent in offline retail but rose 15.9 percent in e-commerce, reflecting the business's ongoing transformation in line with the country's rapid e-commerce growth.

In a previous interview with the Global Times, Penfolds Managing Director Tom King said that while the overall market demand for wine in China is evolving, there is still strong demand for luxury wines by Chinese consumers, which in turn represents a significant opportunity for TWE and Penfolds.

China and Australia have experienced swift expansion in their trade relations, driven by active engagement from officials and businesses, highlighting the strong synergy between the two key trading partners.

In 2024, over 250 Australian firms took part in the 7th China International Import Expo, marking a new participation record.

China-Australia bilateral trade is also improving steadily, reaching $17.68 billion in July, down 9.7 percent year-on-year, compared to a decline of 11.8 percent in June and a 12.8 percent drop in May.

Global Times