(Reuters) -Australia's Treasury Wine Estates ( TSRYF ) said on Monday it is pausing its A$200 million ($130.02 million) share buyback announced in August and will not be retaining its guidance for EBITS growth in fiscal year 2026, owing to the uncertain outlook in its flagship Penfolds business in China as well as its Treasury Americas portfolios.

The country's largest standalone winemaker had earlier flagged a shift in alcohol consumption behaviour in China as large-scale banqueting gives way to smaller-scale occasions, resulting in slower depletion of its Penfolds stock in the key market.

The firm noted that depletion for its Penfolds business "remains weak relative to plan", with the firm now no longer retaining its guidance for the same for low to mid double-digit EBITS growth in fiscal 2026 and approximately 15% EBITS growth in fiscal 2027.

Similarly, given the uncertain outlook around trading conditions and expectations, Treasury Wine said it is prudent to pause the buyback until greater clarity is available.

"Several initiatives are now being implemented to mitigate the expected impacts in China in F26, including pursuing opportunities to re-allocate product to select customers in other key markets in a manner that is sustainable and minimises the risk of parallel imports back into the China market," the winemaker added in its statement.

($1 = 1.5382 Australian dollars)