SYDNEY (Reuters) - Australia's Treasury Wine Estates said on Thursday demand had picked up recently in its biggest market, China, after the COVID-19 pandemic caused a plunge in annual profit, sending its shares surging more than 14%.

Curbs on travel and social gatherings imposed to contain the health crisis had hit sales of the company's high-margin luxury wines, although demand for the winemaker's products was gradually recovering in key markets as countries lift restrictions.

Shipments of Treasury Wine's products from distributors to retailers in China, which started reopening before Europe and the United States, rose 13% in the fourth quarter, with volume up about 40% in June.

"Some of the most impacted channels did reopen and consumers adapt to what is a new normal," Chief Executive Officer Tim Ford said on a conference call.

Ford, however, said the company remained cautious on its near-term outlook, citing uncertainty around the pandemic.

Shares of the world's largest standalone winemaker rose to a more than six-week month of A$13.12 in a weak broader market <.AXJO>.

Treasury Wine said the work to explore a potential divestiture of selected brands and assets in the United States was ongoing, months after disclosing plans to shrink its low-end commercial division in the country.

Profit attributable to shareholders fell to A$260.8 million ($186 million) in the year ended June 30, from A$408.5 million a year earlier, below analysts' estimates of A$290.9 million, according to Refinitiv IBES data.

Treasury Wine declared a final dividend of 8 Australian cents per share, compared with 20 Australian cents a share declared a year earlier.

($1 = 1.3966 Australian dollars)

(Reporting by Renju Jose in Sydney and Arpit Nayak, Sameer Manekar in Bengaluru; Editing by Sriraj Kalluvila and Aditya Soni)