Penfolds maker Treasury Wine Estates says its half year earnings have exceeded expectations, particularly due to strong demand in Asia.
The company says pre-tax earnings in the six months to December are expected to be between $140 million and $150 million, above market expectations of $120 million.
"Our Asia business performance is particularly pleasing as we benefited from increased shipments to the region ahead of Chinese New Year in February," chief executive Michael Clarke said.
Full financial year earnings are now expected to be at the upper end of Treasury Wine's forecast range of $270 million to $290 million.
Treasury Wine, which also owns the Wolf Blass and Lindeman's labels, has been cutting costs and streamlining its operations and brands since Mr Clarke took control in 2014.
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It recently bought most of the Diageo wines business in the US and UK for $US600 million, which will significantly boost sales and supply in the US.
Treasury Wine said on Thursday it expects the next six months to be a "re-set" period for the Diageo Wine business, helping to deliver a more sustainable business while also increasing investment in marketing.
The company will report its complete half year results on February 18.
