Australia’s biggest wine company Treasury Wine Estates has blasted claims made about its performance by a Hong Kong-based equities research firm as “false and misleading”, declaring it would refer the matter to the Australian Securities and Investments Commission.
Treasury released a hard-hitting statement to the ASX on Thursday where it defended itself, in response to a research report by GMT Research.
Treasury Wine Estates, the owner of Penfolds, is seeing red over a controversial research report on the wine business by a Hong Kong firm.Credit:Photo: Justin McManus
The GMT Research note reportedly said Treasury “may have inflated profits by up to 50 per cent over the last two years through the use of acquisition accounting to write-down inventories and establish other liabilities”.
The GMT note also said: “Weak operating cash flow with a widening divergence from cash profits raises additional concerns that profits are being manipulated.”