The Treasury Wine Estates Ltd (ASX: TWE) share price has raced higher on Wednesday and has its all-time high within sight once again.
In late afternoon trade the wine company's shares are up almost 2.5% to $17.90. This means its shares are up 47% over the last 12 months and just 15 cents away from their all-time high.
Why are Treasury Wine Estates' shares storming higher?
Investors have been fighting to get hold of the company's shares after a series of impressive results.
The most recent one, in January, revealed first-half net profit after tax of $187.2 million. This was a solid 37% increase on the prior corresponding period.
The main driver of this profit growth has been the company's success in the lucrative Asian market. During the half its Asia segment reported EBITS growth of 48% to $117 million.
Furthermore, it enjoyed an EBITS margin of 39.3%. Not only was this up 3.1 percentage points on the prior corresponding period, but it was vastly better than any of its other segments.
The good news for shareholders is that management appears confident that its growth can continue for the next couple of years at least.
It advised that it is aligned to the broker consensus EBITS forecast of $524 million in FY 2018. Up from $455.1 million in FY 2017. After which, management expects EBITS to grow a further 25% in FY 2019.
