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Treasury Wines jumps on profit result

Treasury Wines Estate Limited has reported a net profit of $52.3 million for the six months to December, a 30.8 per cent increase from the previous corresponding period.

It also recorded earnings before interest and tax of $73.4 million, a 20 per cent drop from the same period the year before, as the cost of goods sold rose on the back of challenging weather conditions affecting the 2011 vintage and difficult retail conditions.

The company, one of the world's largest wine firms and the former wine arm of Foster's, declared an interim dividend of 6 cents per share, 50 per cent franked.

Treasury Wine Estates, rose 15 cents, or 3.06 per cent, to $5.05 in early trade.

Treasury Wines Estate's chief executive, David Dearie, said his company was continuing to invest for growth and that the outlook for the global wine industry remained positive.

"Overall the wine industry is edging ever closer to supply and demand balance with the poor 2012 vintage in Europe further reducing global supply," Mr Dearie said in a statement.

"Early signs of the 2013 Australian vintage appear generally favourable with growing conditions characterised by low rainfall in winter and the growing season to date."