Treasury Wine Estates on Monday reported a first-half bottom-line net loss of $649.4 million, against a net profit of $220.9 million in the previous corresponding period.
The statutory result reflected a post-tax loss of $751 million, due to an impairment related to its US assets.
Stripping out that impact, its interim net profit was $128.5 million, down 46.3 per cent.
However, Treasury Wine's underlying result - earnings before interest and tax, SGARA and material items - was $236.4 million, which was just above its guidance of $225 million to $235 million, albeit a fall of almost 40 per cent.
The underlying result reflected the ongoing impact of trends in its US and China markets, including the restriction of shipments due to parallel import activity in China.
"TWE has commenced strategic action to maintain brand strength and healthy sales channels across key markets, with reducing customer inventory holdings in the US and China as a priority," it said in a statement.
The group expects its second half underlying earnings for 20205/26 to be higher than the first half, driven by improved momentum in its California business.
Treasury Wine booked sales of $1.3 billion for the first half, down 16 per cent on the prior corresponding period.
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