Diamond Estates Wines & Spirits Inc. (“Diamond Estates” or
“the Company”) (DWS-TSX Venture) today announced its financial
results for the three-month period ending June 30, 2023 (“Q1
2024”).
Q1 2023 Summary:
- Revenue for Q1 2024 was $7.9 million, an increase of $0.4
million from $7.5 million in Q1 2023. The largest contribution to
the increase in sales year-over-year came from the Winery division
contributing $0.3 million and the Agency division contributed $0.1
million. The increase experienced at the Winery division came from
$0.8 million in bulk wine sales at Backyard Vineyards and the
moderate increase from the Agency came from several brands;
- Gross margin1 for Q1 2024 was $2.9 million, a decrease of $0.1
million from $3.0 million in Q1 2023, while gross margin as a
percentage of revenue was 36.8% for Q1 2024 compared to 40.3% in Q1
2023. The decline is gross is attributed to the Winery division
which experienced a decrease in gross margins because of a
significant one-time sale in bulk wine and a general increase in
cost of goods across all channels. When accounting for the
depletion of the EWG inventory gross margins decreased by 10.2%
from 46.6% in Q1 2023 to 36.4% in Q1 2024 and when removing the
bulk wine sale gross margin decreases to 42.3% Q1 2024;
- EBITDA1 remained flat at negative $0.9 million in Q1 2024
relative to Q1 2023; however, when adjusting for the fair value of
EWG inventories sold, Adjusted EBITDA1 decreased from a negative
$0.7 million in Q1 2023 to a negative $0.9 million in Q1 2024;
and
- Net loss was $1.6 million, compared to a net loss of $0.4
million in Q1 2022.
Subsequent Event
On August 22, 2023 the Company received notification from its
largest supplier of import wines that the contract that was set to
expire on October 1, 2023 is not being renewed. Further disclosure
is outlined in the Management Discussion and Analysis. The Company
is still assessing any mitigating actions that may be undertaken
and looks to replace that business with a dedicated focus on its
current and prospective supplier partners going forward.
President’s Quote
“We are experiencing an unprecedented time in the beverage
alcohol industry here in Canada, and around the world. It is
extremely rare to see consumers restricting dining out and alcohol consumption more broadly in order to
afford the essentials of life,” said Andrew Howard, President and
CEO.
“This has resulted in softer than anticipated topline results.
Combined with continued expense pressure, our bottom line results
have not improved vs last year with EBITDA essentially flat. While
we are not satisfied with this result, we are pleased to see
revenue growth of 7.5% and off-take results showing our business
holding our own or out-performing industry in every major category
over the past 12 months. I also believe the soft industry results
will be short lived and that we are well positioned for growth with
innovative ideas and products ready to capitalize as the industry
rebounds, along with the beverage alcohol retail expansion and
modernization that is expected in Ontario“.
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of
high-quality wines and ciders as well as a sales agent for over 120
beverage alcohol brands across Canada. The Company operates five
production facilities, four in Ontario and one in British Columbia,
that produce predominantly VQA wines under such well-known brand
names as 20 Bees, Creekside, EastDell, Lakeview Cellars, Mindful,
Queenston Mile, Shiny Apple Cider, Fresh, Proud Pour, Red Tractor,
Seasons, Serenity, Persona and Backyard Vineyards.
Through its commercial division, Trajectory Beverage Partners,
the Company is the sales agent for many leading international
brands in all regions of the country as well as being a distributor
in the western provinces. These recognizable brands include Josh
wines from California, Fat Bastard, Meffre, Pierre Chavin and Andre
Lurton wines from France, Brimincourt Champagne from France, Merlet
and Larsen Cognacs from France, Kaiken wines from Argentina, Blue
Nun and Erben wines from Germany, Calabria Family Estate Wines and
McWilliams Wines from Australia, Saint Clair Family Estate Wines
and Yealands Family Wines from New Zealand, Redemption Bourbon and
Rye whiskies from the U.S., Gray Whale Gin from California,
Storywood and Cofradia Tequilas from Mexico, Magnum Cream Liqueur
from Scotland, Talamonti and Cielo wines from Italy, Catedral and
Cabeca de Toiro wines from Portugal, Waterloo Beer & Radlers
from Canada, Landshark Lager from the USA, Edinburgh Gin, Tamdhu,
Glengoyne and Smokehead single- malt Scotch whiskies from Scotland,
Islay Mist, Grand MacNish and Waterproof whiskies from Scotland, C.
Mondavi & Family wines including C.K Mondavi & Charles Krug
from Napa, Wize Spirits, Hounds Vodka and Valley of Mother of God
Gins from Canada, Bols Vodka from Amsterdam, Koyle Family Wines
from Chile and Pearse Lyons whiskies and gins from Ireland.
Forward Looking Statements
This press release contains forward-looking statements. Often,
but not always, forward-looking statements can be identified by the
use of words such as “plans”, “expects” or “does not expect”, “is
expected”, “estimates”, “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Diamond Estates Wines and Spirits
Inc. to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Actual results and developments are
likely to differ, and may differ materially, from those expressed
or implied by the forward-looking statements contained in this
press release. Such forward-looking statements are based on a
number of assumptions which may prove to be incorrect, including,
but not limited to: the economy generally; consumer interest in the
services and products of the Company; financing; competition; and
anticipated and unanticipated costs. While the Company acknowledges
that subsequent events and developments may cause its views to
change, the Company specifically disclaims any obligation to update
these forward-looking statements. These forward-looking statements
should not be relied upon as representing the views of the Company
as of any date subsequent to the date of this press release.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Non IFRS Financial Measure
Management uses net income (loss) and comprehensive income
(loss) as presented in the unaudited interim condensed consolidated
statements of net income (loss) and comprehensive income (loss) as
well as "gross margin", "EBITDA" and "Adjusted EBITDA" as a measure
to assess performance of the Company. The Company defines "gross
margin" as gross profit excluding depreciation. EBITDA and
"Adjusted EBITDA" are other financial measures and are reconciled
to net income (loss) and comprehensive income (loss) below under
"Results of Operations".
EBITDA and Adjusted EBITDA are supplemental financial measures
to further assist readers in assessing the Company’s ability to
generate income from operations before considering the Company's
financing decisions, depreciation of property, plant and equipment
and amortization of intangible assets. EBITDA comprises gross
margin less operating costs before financial expenses, depreciation
and amortization, non-cash expenses such as share-based
compensation, one-time and other unusual items, and income tax.
Adjusted EBITDA comprises EBITDA before non- recurring expenses
including cost of sales adjustments related to inventory acquired
in business combinations, EWG transaction costs expensed,
government funding under CEWS and CERS programs, and other
non-recurring adjustments included in the calculation of EBITDA.
Gross margin is defined as gross profit excluding depreciation on
property, plant and equipment used in production. Operating
expenses exclude interest, depreciation on property, plant and
equipment used in selling and administration, and amortization of
intangible assets.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230828193484/en/
For more information:
Andrew Howard President & CEO Diamond Estates Wines &
Spirits Inc. ahoward@diamondwines.com
Ryan Conte, CPA, CA, CBV CFO Diamond Estates Wines & Spirits
Inc. rconte@diamondwines.com
Diamond Estates Wines an... (TSXV:DWS)
過去 株価チャート
から 11 2024 まで 12 2024
Diamond Estates Wines an... (TSXV:DWS)
過去 株価チャート
から 12 2023 まで 12 2024
