Treasury Wine Estates (ASX:TWE) said it has decided not to proceed with divesting its commercial portfolio after offers received did not meet its expectations of compelling value, according to a Thursday filing with the Australian bourse.
In August 2024, the company recognized a non-cash impairment charge of AU$354 million for the year ended June 30, 2024, primarily driven by the write-down of its commercial brands, including Wolf Blass, Yellowglen, Lindeman's, and Blossom Hill.
The impairment charge reflected a strategic reassessment of the commercial portfolio's value, which contributed less than 5% of the company's gross profit in fiscal 2024.
Shares of the company fell 4% in recent Thursday trade, earlier hitting their lowest since May 2021.
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