Treasury Wines to miss guidance on virus

Treasury Wine Estates has joined a growing list of Aussie firms to flag a coronavirus hit, with the company announcing it will no longer able meet already lowered full-year earnings guidance.

The Penfolds owner said on Tuesday its staff in China were yet to return to work amid virus containment controls set in place by Chinese authorities, a scenario that has also hurt its partnership network, including wholesalers, retailers and logistics providers.

Post-Chinese New Year consumption had been significantly affected as the virus continues to spread, Treasury said.

Treasury had forecast 5.0 per cent to 10 per cent growth in earnings for the year. 

A further update is expected at the company’s full year result later this year. 

A glut of cheap wine had already soured Treasury’s US performance in the first half.

The company joins other local firms such as Blackmores and Qantas in flagging a likely coronavirus hit with investors during the past few days.  

Australian stocks have plunged for a second day after fears the coronavirus could become a pandemic sparked a major sell-off on global markets.

Treasury shares were 4.56 per cent lower at $11.10 by 1537 AEDT. 

AAP

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