US assets are impaired, according to Australia’s Treasury Wine Estates

Australia’s Treasury Wine Estates (TWE.AX), which introduced a new tab, stated on Monday that it anticipates recognizing a non-cash impairment of its assets located in the United States following the adoption of more cautious long-term growth projections for its Americas division.

According to the winemaker, the final impairment amount and asset allocation will be determined as part of its interim results for 2026.

According to Treasury’s annual report, impairment capacity would be eliminated if future cash flows in the Americas division were reduced by 11% annually.

Treasury stated on Monday that it has adopted more conservative long-term market growth estimates, despite the fact that major brands like DAOU, Frank Family Vineyards, and Matua continue to outperform the market.

The Treasury Americas and Treasury Collective-Americas units’ performance will be impacted by the tighter assumptions, which will lower long-term earnings growth rates, it continued.

With the potential to affect other assets, the company anticipates that the impairment will at least result in a full write-off of Americas goodwill, which was valued at A$687.4 million ($450 million) as of June 30.

Treasury halted a A$200 million share purchase and retracted its profitability projection for 2026 in October, citing distribution issues in the US and poor sales of its iconic Penfolds wines in China.