The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst
: Yes, maybe just another one on the first half, second half seasonality. So it sounds like Penfolds second half skewed, 19 Crimes, second half skewed.
I think you're lapping a gain on sale in the first half and $30 million of Frank contribution in the first half. Is it fair to assume the first half will be
down in EBITS, with the second half kind of catching up to get to that high single-digit number?
Question: Thomas Kierath - Barrenjoey Markets Pty Limited, Research Division - Analyst
: Yes. Yes. No. Got it. And the second one, I want to ask is just on depletions versus shipments in Americas. I see that you've said depletions ahead
by 600,000 cases shipments, excluding new products that you've launched. I just wondered if you could give us a number like an all-in number, so
not excluding NPD, which I know is pretty big. I guess the reason I ask is it just seems like there's a whole heap of stock that distributors and retailers
have got and they're kind of destocking and that's been happening for a little while now, but I just want to understand where exactly you are in
that kind of destocking position over in Americas?
Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst
: Maybe just a question regarding the cost savings that come out of the premium brands operating model. That'd be above the cash cost of $30
million. When are they expected to be received? Are any -- will any be received in fiscal '24? And how will they be used to achieve the Premium
Brands EBITS margin expansion target? Or will some need to be used to offset, say, some operating deleverage as volumes moderate in TPB, please?
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AUGUST 15, 2023 / 12:00AM, TWE.AX - Full Year 2023 Treasury Wine Estates Ltd Earnings Call
Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst
: Do you think any will be net? Do you think you'll actually generate net savings?
Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst
: Yes, please.
Question: Shaun Robert Cousins - UBS Investment Bank, Research Division - Analyst
: Okay. And my second question is just around the plans for 19 Crimes Classic. Can you just talk a bit about the confidence in the label relaunch.
How the old label product is being cleared without damaging the long-term health of the brand, especially, I guess there's been evidence in market
of second-tier SKUs being sold at very low prices? Just I guess, maybe how you're managing clearing old product without damaging brand health
and ultimately, without impeding the success of the 19 Crimes Classic relaunch, please?
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