Treasury Wines reported a mixed 1H23 result. Underlying sales were weak, but profit margins improved significantly. The Franks Family acquisition contributed almost two-thirds to its EBITS growth. The company needs to lift its marketing and promotional investment in 19 Crimes to stabilise revenue. Gross margin improvement was significant in 1H23 and reflects the acquisition as well as reduced supply chain costs. We expect COGS improvements to be more meaningful in FY24e as grape costs fall.