Welcomes Sonoma-Cutrer Vineyards to The
Duckhorn Portfolio
Advances Route-to-Consumer Strategy
Announces Preliminary Third Quarter 2024 Net
Sales
The Duckhorn Portfolio, Inc. (NYSE: NAPA) (the “Company”) today
announced that Deirdre Mahlan has been appointed President, Chief
Executive Officer and Chairperson, effective immediately. Mahlan
has been a member of The Duckhorn Portfolio, Inc. Board of
Directors since March 2021. For the past six months, she has served
as interim President, Chief Executive Officer and Chairperson,
during which time the Board conducted an internal and external
leadership search and determined that Mahlan is best positioned to
lead the Company forward.
“We are thrilled Deirdre will serve as our permanent President,
CEO and Chairperson, and look forward to continuing to partner with
her to deliver on the vision she has for The Duckhorn Portfolio,”
said Michelle Gloekler, The Duckhorn Portfolio’s lead independent
director and chair of the CEO search committee. “Her industry track
record and performance both on our Board and as interim CEO make it
clear that Deirdre is the ideal leader to spearhead the Company’s
next phase of growth.”
Mahlan brings over 30 years of alcohol and beverage industry
experience and an extensive track record of operational and
financial leadership. Previously, she spent 20 years at Diageo,
most recently serving as President of Diageo North America. Prior
to that, Mahlan held positions of increasing responsibility in
finance, including five years as CFO of Diageo plc. Earlier in her
career, Mahlan spent three years at Joseph E. Seagram & Sons
and eight years at PricewaterhouseCoopers Limited. Mahlan also
serves on the boards of Kimberly-Clark Corporation, a consumer
goods company, and Haleon plc, a healthcare goods company.
“Despite the external headwinds facing our industry, I have
strong conviction that the Company is well-positioned to leverage
our industry leadership, talented teams and extensive partnerships
to remain at the forefront of the luxury wine category,” said
Mahlan. “My years of experience with the Company, both as interim
CEO and as a member of the Board since 2021, give me valuable
perspective on the incredible opportunity in front of us. I’m
honored the Board has entrusted me to lead The Duckhorn Portfolio
at this important time.”
Mahlan added, “My key priorities in the immediate term will be
ensuring the successful integration of Sonoma-Cutrer and advancing
our route-to-consumer action plan, among other priorities. As I
work with The Duckhorn Portfolio team to lead the Company’s next
chapter, we will be focused on driving consistent, profitable
growth and creating meaningful value for all our stakeholders.”
Closing of the Sonoma-Cutrer Vineyards Acquisition
Today, the Company announced the closing of its acquisition of
Sonoma-Cutrer Vineyards, one of California’s best-known and
fastest-growing luxury Chardonnay winery brands, from Brown-Forman
Corporation (NYSE: BF.B). This acquisition meaningfully enhances
the Company’s position within the Chardonnay category, the number
one domestic white varietal, expands its brand architecture and
solidifies its standing as a leading luxury wine company. The
Company expects the acquisition will be accretive in fiscal 2025,
and the Company is confident run-rate synergies will exceed the
previous estimate of $5 million annually, with further potential to
drive incremental net sales growth. The Company expects the
addition of Sonoma-Cutrer to extend the Company’s reach to a
broader base of consumers and trade partners, further enabling The
Duckhorn Portfolio to outpace industry growth.
Route-to-Consumer Strategic Realignment
As previously communicated, the Company is conducting a
comprehensive evaluation of its distribution network, with the goal
of driving a significant increase in focus and investment from our
distributor partners. The Company expects to implement a strategy
to place its brands in the distribution network that it believes
will best position the Company for sustained profitable growth.
Third Quarter Preliminary Net Sales Results
The Company also announced that net sales for the third quarter
of fiscal 2024 on a preliminary and unreviewed basis are expected
to be in the range of $91 million to $93 million. These results
reflect continuing softness in the wine market and a
lower-than-expected response rate to the Company’s Kosta Browne
appellation series offering. While consumer demand softness
continues, the Company remains focused on delivering profitable
growth that outpaces the industry. The Company anticipates that
third quarter Adjusted EBITDA margins will be broadly in line with
its fiscal year-to-date trend as it continues to exercise strict
cost controls. The Company expects to provide an updated financial
outlook for full year fiscal 2024 on its third quarter earnings
call to be held Thursday, June 6, 2024.
The foregoing preliminary net sales information reflects
management's current views with respect to the Company's financial
results. Such preliminary financial information is subject to
finalization and should not be viewed as a substitute for full
quarterly financial statements prepared in accordance with
applicable accounting standards. In the course of preparing and
finalizing the Company’s financial statements for the third quarter
ended April 30, 2024, this preliminary estimate is subject to
change, and the Company may identify items that will require it to
make adjustments to such estimate. For these or other reasons, the
preliminary net sales estimates may not ultimately be indicative of
the Company's results for the third quarter ended April 30, 2024,
and actual results may differ materially from those described
above. No independent registered public accounting firm has
reviewed, examined, or performed any procedures with respect to,
nor have they expressed any form of assurance on, the preliminary
net sales information.
Third Quarter Fiscal 2024 Conference Call Information
The Company will report financial results for the third quarter
ended April 30, 2024 on Thursday, June 6, 2024, after market
close.
The Company will host a conference call to discuss these results
at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time.) Investors
interested in participating in the live call can dial 833-470-1428
from the U.S. and 404-975-4839 internationally, and enter
confirmation code 799215. A telephone replay will be available
approximately two hours after the call concludes through Thursday,
June 20, 2024, by dialing 866-813-9403 or 929-458-6194, and
entering confirmation code 213170. There will also be a
simultaneous, live webcast available on the Company’s investor
relations website at
http://ir.duckhorn.com/events-and-presentations. The webcast will
be archived for 30 days.
About The Duckhorn Portfolio, Inc.
The Duckhorn Portfolio is North America’s premier luxury wine
company, with eleven wineries, ten state-of-the-art winemaking
facilities, eight tasting rooms and over 2,200 coveted acres of
vineyards spanning 38 Estate properties. Established in 1976, when
vintners Dan and Margaret Duckhorn founded Napa Valley’s Duckhorn
Vineyards, today, our portfolio features some of North America’s
most revered wineries, including Duckhorn Vineyards, Decoy,
Sonoma-Cutrer, Kosta Browne, Goldeneye, Paraduxx, Calera,
Migration, Postmark, Canvasback and Greenwing. Sourcing grapes from
our own Estate vineyards and fine growers in Napa Valley, Sonoma
County, Anderson Valley, California’s North and Central coasts,
Oregon and Washington State, we offer a curated and comprehensive
portfolio of acclaimed luxury wines with price points ranging from
$20 to $230 across more than 15 varietals and 39 appellations. Our
wines are available throughout the United States, on five
continents, and in more than 50 countries around the world.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In some situations, you can identify forward-looking
statements by words such as “approximately,” “anticipate,”
“assume,” “believe,” “contemplate,” “continue,” “could,”
“estimate,” “expect,” “future,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “seek,” “should,” “target,”
“will” and similar terms and phrases to identify forward-looking
statements. These forward-looking statements include, among others,
statements about the potential market opportunity resulting from
the acquisition of the Sonoma-Cutrer and associated business
strategy, the Company’s ability to better address certain markets,
expand its capabilities and position in the industry and extend its
product offerings to better serve our customers, the potential
impact of the Company’s distribution network realignment, as well
as the potential synergies and other financial benefits derived by
and financial impact to the Company from the acquisition. All of
our forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those that we are expecting, including: risks associated with
transactions generally; the failure to consummate or delay in
consummating the transaction for other reasons; the risk that a
condition to closing of the transaction may not be satisfied; the
occurrence of any event, change or other circumstances that could
give rise to the termination of the merger agreement; the outcome
of any legal proceedings that may be instituted following
announcement of the transaction; failure to retain key management
and employees of Sonoma-Cutrer; issues or delays in the successful
integration of Sonoma-Cutrer’s operations with those of the
Company, including incurring or experiencing unanticipated costs
and/or delays or difficulties; unfavorable reaction to the
transaction by customers, competitors, suppliers and employees;
unpredictability and severity of catastrophic events, including but
not limited to acts of terrorism, war or hostilities, as well as
management’s response to any of the aforementioned factors; and
additional factors discussed in the Company’s filings with the
SEC.
The forward-looking statements contained in this press release
are based on management’s current plans, estimates and expectations
in light of information currently available to the Company and are
subject to uncertainty and changes in circumstances. There can be
no assurance that future developments affecting the Company will be
those that the Company has anticipated. Actual results may differ
materially from these expectations due to changes in global,
regional or local political, economic, business, competitive,
market, regulatory and other factors, many of which are beyond our
control, as well as the other factors described in Item 1A, “Risk
Factors” in the Company’s 2023 10-K filed with the SEC on September
27, 2023, and the Company’s 10-Q for the quarter ended January 31,
2024, filed with the SEC on March 7, 2024, and other documents the
Company may file with the SEC from time to time. Should one or more
of these risks or uncertainties materialize or should any of our
assumptions prove to be incorrect, our actual results may vary in
material respects from what we may have expressed or implied by
these forward-looking statements. Any forward-looking statement
made by the Company speaks only as of the date on which it is made.
All future written and oral forward-looking statements attributable
to the Company or persons acting on the Company’s behalf are
expressly qualified in their entirety by the previous statements.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501956012/en/
Investors Ben Avenia-Tapper IR@duckhorn.com (707) 339-9232
Media Jessica Liddell, ICR DuckhornPR@icrinc.com (203)
682-8200
Duckhorn Portfolio (NYSE:NAPA)
過去 株価チャート
から 11 2024 まで 12 2024
Duckhorn Portfolio (NYSE:NAPA)
過去 株価チャート
から 12 2023 まで 12 2024
