How did the Treasury Wine (ASX:TWE) share price perform in 2021?

The Treasury Wine Estates share price was bubbling in 2021.

| More on:
A group of people clink wine glasses in an outdoor, late afternoon setting to celebrate the rising Treasury Wine share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Treasury Wine Estates Ltd (ASX: TWE) share price had a bumper year in 2021. The company is Australia's largest wine company and a huge global player.

Shares in the winemaker flowed steadily to finish the year at $12.38, up nearly 32%. In comparison, the S&P/ASX 200 Index (ASX: XJO) returned 13%.

Let's delve into the significant events that may have influenced the Treasury Wine share price movement this year.

What impacted the Treasury Wine share price this year?

Treasury Wine Estates boasts household names in popular Australian wines including Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate.

Overall, investors showed an outpouring of support for the winemaker, sending the company's share price higher in a few bursts during the year.

Looking back at 2021, we see that February provided a major boost for shareholders. Company shares jumped more than 20% from $9.90 to $11.91 between market close on 16-18 February.

Investors responded positively to the 2021 interim results announcement. Despite underlying net profit after tax declining 24%, shareholders reacted well to the update. Net debt was down $403.7 million while the company declared a dividend of 15 cents per share.

May was also a superb month for the Treasury Wine share price. Shares exploded 11.46% between the close on May 12 and May 17 after an investor presentation. At the time, the company revealed its goal to drive growth, profit, efficient capital usage and strong shareholder returns.

The company's share price also jumped in August after the company changed its dividend distribution to 13 cents per share and reported strong annual results.

For the 2021 financial year, Treasury Wine boosted its net profit after tax by 2%, up to $250 million. As my Foolish colleague James reported, the main driver of growth in the FY 2021 was the company's North America business with strong support from its operations in Australia and New Zealand business. Shares hit a yearly high of $13.20 the day after these results were reported.

Shares in the company also soared almost 7% between the close on 17 November and 19 November off the back of two announcements.

The first was when Treasury Wine revealed it would acquire Frank Family Vineyards in California's Napa Valley for $432 million. The company then hit the headlines on news its Penfold brand would partner with Blockbar to produce non-fungible tokens (NFTs). Blockbar is a leading NFT marketplace for luxury wines and spirits.

Foolish takeaway

The Treasury Wine share price performed 18% better than the S&P/ASX 200 Index (ASX: XJO) in 2021.

Shares in the company were up 3.86% in the final month of the year.

The company has a market capitalisation of more than $8.9 billion based on the current share price.

Finally, as Motley Fool Australia reported on Friday, the team at Morgans believes the winemaker's shares are undervalued given its recent restructuring. The broker is positive on the company's future and has a $14.06 price target on the Treasure Wine share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

A businessman stacks building blocks.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX shares hit a new record high today.

Read more »

A man sees some good news on his phone and gives a little cheer.
Share Gainers

Why Auckland Airport, Australian Ethical, Breville, and Clarity shares are charging higher

These shares are having a better day than most on Thursday. But why?

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a day to forget this hump day.

Read more »