Full Year 2022 Treasury Wine Estates Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : Can you talk a little bit about the supply chain costs that you've highlighted the $25 million in '22, obviously higher than what you thought initially there. How should we think around the first half, second half split within first half, second half '23, please? Just given that it was sort of quite different between the 5 to 10 that you called out in the first half '22, please?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : And then hence, that would really sort of continue on for '24 at that like your bank in what you're going to incur in '23 going forward...

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : Great. And maybe just a quick question on the $65 million supply chain savings to the broader supply chain program that's now $90 million, was any realized in fiscal '22 and what's driven -- what's the source of upside from that plus $75 million to now you're confident to call out $90 million what's if you could sort of point to some things that have given you confidence to call that out by -- at $90 million, please?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : And sorry, Matt, just to clarify that. So that means is the incremental $45 million in '23 or is the incremental the $60 million?

Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst : $65 million minus $20 million, it's incremental $45 million.

Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst : A couple of questions on Penfolds actually. Just on the Asia ex China sales, like they've gone up almost 3x now in the last 4 years from pre-COVID. Can you just maybe give some color on how much you think of that is kind of being consumed in those markets versus how much is kind of sitting with distributors versus how much is being reexported to other markets?

Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst : And maybe just a second one. The sales of Penfolds were flat in the second half, but the margin was up a bit over 300 bps. And I noticed that you're flagging that kind of the margin falls back in '23. Can you maybe just step through why the uptick in margin in the second half? And then again, why the margin reduction that you're expecting next year?