“Until we see a marked pullback and a deterioration in economic conditions, people will continue to buy the wine while they still have the money.”

In the 2023 financial year, the global wine company will be working towards long-term growth goals, with strategic priorities to “remain largely unchanged”.

With first quarter earnings in line with expectations, Treasury Wine expects to deliver “strong growth” for the full year.

“After two years of significant change, we enter financial year 2023 confident that we are absolutely on the right path towards the delivery of the 2025 strategy and our ambition to be the world’s most admired premium wine company.”

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Treasury Wine launched its made-in-China Penfolds in Shanghai late last month, as part of a wider collection known as One by Penfolds, which groups together its multi-country of origin wines from Bordeaux, California and Ningxia.

Even though China’s economic growth rate is slowing, and its harsh lockdowns had put the brakes on consumer spending, Penfolds managing director Tom King said consumer demand was “significantly ahead” of supply.

Treasury Wine’s net profits ticked up 5.3 per cent to $263.2 million for the 2022 financial year, while the company’s preferred measure of profitability, earnings before interest, taxes and the cost of harvested grapes (EBITS) lifted 3 per cent to $523.7 million.

Logistics and global supply chain issues are expected to take a $25 million bite out of the company’s profits this financial year.

In the annual general meeting, chairman Paul Rayner said the recent flooding in Victoria, NSW and Tasmania had not affected any of Treasury’s vineyards.

“I’m not aware that the recent floods, despite being quite tragic, have affected our winegrowing areas,” he said.

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