Barrenjoey wasted no time responding to breaking news on the China wine tariffs front.
On Sunday morning, head of sales research Mark Malouf penned a note to clients pouring cold water on headlines declaring the tariffs on Australian wine had been dropped and branding the government’s WTO announcement as more politics than breakthrough.
“[The] reading [of] his actual statement doesn’t suggest that the tariffs have yet been removed, rather the Chinese government have agreed to ‘undertake an expedited review of its duties’… a ‘process that is expected to take five months’,” he said.
“...Sounds like politics at its very best, no real progress, but Albo needed something to take the pressure off his visit to China in a couple of weeks’ time…”
Malouf reckons this review actually complicates things for Australia’s largest wine company, Treasury Wine Estates, which he says has been holding back inventory in preparation for the tariffs being removed before or at the government’s November trip.
“The risk to financial year 2024 now is, of course, that even if the tariffs come off in March/April, will be a positive for sure, but will be too late to impact FY24 earnings,” he said.
Barrenjoey’s “wino team” Tom Kierath and Pete Marks have an underweight recommendation on TWE.
Propel arranged 18,029 funerals in the 2023 financial year at the average cost of $6398 per funeral. That translated to a 16 per cent rise in revenue to $168.5 million, and 17.9 per cent increase in operating after-tax profit to $20.9 million.
