Australian wine giant Treasury Wine Estates, the parent company of Penfolds, has reported a full year net profit of AU$419.5 million in 2019, up 16%, driven by sales of premium wines and mass-produced offerings, or ‘masstige’ wines.

Its sales revenue during the year reached AU$2.93 billion, a 16.6% increase on a reported currency basis. Luxury and masstige wines’ net sales revenue now represent 68.8% of the company’s overall sales, according to the latest financial report released on August 15.

The group’s strong growth in sales and profits buoyed investor confidence at a much needed time.

Just a few days ago on August 7, a Hong Kong based company GMT Research alleged that the group may have inflated its pretax profits by as much as 50% over the past two years, or by about A$300 million ($203 million) cumulatively.

Explaining on the group’s growth in 2019, it says Americas led by the US remains its biggest market by revenue, and generated AU$1.13 billion in sales, ahead of Asia’s AU$748.9 million.

However, in terms of profits, Asia proves to a more profitable market for Treasury.

The group’s operating profits in Asia were up 48.7% to AU$293.5 million, compared with Americas’ AU$218.7 million.

In Asia, the company says it achieved ‘record depletions’ during the period, and forward days of inventory cover remain broadly in line with the prior year.

In Europe, lower-end and mass produced wines led the region’s growth during the year. Its net sales revenue grew by 1.5% to AU$346 million.

It also pints out that overall UK wine market conditions remain challenging.

Meanwhile, the company announced a AU$180 million investment to expand production at its Bilyara winery in South Australia to expanding its luxury wine offerings.