The Treasury Wine Estates Ltd (ASX: TWE) share price is rising on Tuesday.
In morning trade, the wine giant's shares are up 1% to $12.83.
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Why is the Treasury Wine share price rising?
Investors have been bidding the Treasury Wine share price higher for a couple of reasons.
One is a rebounding ASX 200 index after a very strong session of trade on Wall Street overnight.
The other reason is the release of a first quarter trading update at the company's annual general meeting today.
How is Treasury Wine performing?
The good news for shareholders is that the current uncertain economic environment has not impacted wine purchases.
Treasury Wine's chief executive officer, Tim Ford, revealed that trading conditions and its earnings during the first quarter were in line with expectations. He commented:
Demand for Premium and Luxury wine has remained consistent across all of our key markets throughout the first quarter, reflecting ongoing category premiumisation trends.
We will continue to closely monitor the consumer and trading environment, confident that the strengths of our brand portfolios, the historic resilience of the category through past economic downturns and the flexibility of our business model leaves us well placed to react to any changes that may arise.
And with the inflation and cost outlook remaining in line with previous expectations, Ford notes that the company is on track to deliver strong growth and EBITS margin expansion towards its long-term target of 25% in FY 2023. He concludes:
After two years of significant change, we enter F23 confident that we are absolutely on the right path towards the delivery of the TWE 2025 strategy and our ambition to be the world's most admired premium wine company.
