An increased focus on luxury brands such as Penfolds is part of a strategy driving optimism that Treasury Wine Estates will improve its performance this financial year.

In the 2014 annual report released to Australian Securities Exchange today, chairman Paul Rayner and CEO Michael Clarke restated their confidence in a rosier future following a turbulent year which saw the international wine group report a $100 million loss for FY14.

Rayner acknowledged that the volatility surrounding the company – which has faced dual takeover bids and a major restructure – had created anxiety for shareholders. However, he said it closed the financial year “in a much stronger and better strategically aligned position than that which we entered the financial year”.

“Looking ahead, I am very confident that the challenges faced in FY14, together with the actions taken to address them, have made our company stronger and will set TWE up for future financial success,” he said.

“Given the board’s confidence in the future, and the strong balance sheet … I am pleased to report a final dividend of 7 cents per share unfranked, to give a full-year dividend of 13 cents per share, unchanged from last year.”

Clarke, who took over as CEO in March, said sales in Australia and New Zealand continued to be affected by a “challenging retail environment” and decline in sparkling wine sales, but despite this the company’s flagship luxury brands had grown in volume and value.

In the second half of the financial year, sales of Penfolds rose 5.2 per cent, with Pepperjack sales up 19.8 per cent and Wynns up 12.8 per cent.

The report said Treasury Wine Estates expects FY15 to be a “reset year”, with a number of changes aimed at improving financial performance, including reinvigorated consumer marketing, cuts to overhead costs, increased collaboration with major retailers, and more consistent year-round marketing and sales support for the Penfolds brand underpinned by the change in vintage release dates.