Diamond Estates Wines & Spirits Reports Fiscal Q1 2025 Financial Results
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) reported financial results for Q1 2025 ending June 30, 2024. Revenue decreased to $6.2 million from $7.9 million in Q1 2024. The Winery division saw a $0.4 million increase, while the Agency division experienced a $2.1 million decrease. Gross margin percentage improved to 44.8% from 36.8%, but gross margin value slightly decreased to $2.8 million. Adjusted EBITDA improved by $0.6 million to negative $0.3 million. Net loss reduced to $2.0 million from $2.5 million in Q1 2024.
Post-quarter events include a $2.3 million private placement, receipt of $2.1 million from the VQA Wine Support Program, and progress on debt reduction. The company is implementing strategies to address industry challenges and improve financial performance.
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ha riportato risultati finanziari per il primo trimestre del 2025, terminato il 30 giugno 2024. Il fatturato è diminuito a 6,2 milioni di dollari rispetto ai 7,9 milioni di dollari del primo trimestre del 2024. La divisione Vigna ha registrato un aumento di 0,4 milioni di dollari, mentre la divisione Agenzia ha subito una diminuzione di 2,1 milioni di dollari. La percentuale di margine lordo è migliorata al 44,8% rispetto al 36,8%, ma il valore del margine lordo è leggermente diminuito a 2,8 milioni di dollari. L'EBITDA rettificato è migliorato di 0,6 milioni di dollari, portandosi a -0,3 milioni di dollari. La perdita netta si è ridotta a 2,0 milioni di dollari rispetto ai 2,5 milioni di dollari del primo trimestre del 2024.
Gli eventi successivi al trimestre includono un collocamento privato di 2,3 milioni di dollari, il ricevimento di 2,1 milioni di dollari dal Programma di Supporto al VQA Wine e progressi nella riduzione del debito. L'azienda sta attuando strategie per affrontare le sfide del settore e migliorare le performance finanziarie.
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) informó resultados financieros para el primer trimestre de 2025, terminado el 30 de junio de 2024. Los ingresos disminuyeron a 6,2 millones de dólares desde 7,9 millones de dólares en el primer trimestre de 2024. La división de Bodega vio un aumento de 0,4 millones de dólares, mientras que la división de Agencia experimentó una disminución de 2,1 millones de dólares. El porcentaje de margen bruto mejoró al 44,8% desde el 36,8%, pero el valor del margen bruto disminuyó ligeramente a 2,8 millones de dólares. El EBITDA ajustado mejoró en 0,6 millones de dólares, alcanzando -0,3 millones de dólares. La pérdida neta se redujo a 2,0 millones de dólares desde 2,5 millones de dólares en el primer trimestre de 2024.
Los eventos posteriores al trimestre incluyen un colocación privada de 2,3 millones de dólares, la recepción de 2,1 millones de dólares del Programa de Apoyo al VQA Wine, y avances en la reducción de la deuda. La empresa está implementando estrategias para abordar los desafíos de la industria y mejorar su rendimiento financiero.
다이아몬드 에스테이트 와인 & 스피리츠 주식회사 (TSXV: DWS)는 2024년 6월 30일로 끝나는 2025년 1분기 재무실적을 보고했습니다. 수익이 감소했습니다 7.9백만 달러에서 6.2백만 달러로. 와이너리 부문은 0.4백만 달러 증가했으며, 대행사 부문은 2.1백만 달러 감소했습니다. 총 마진 비율은 36.8%에서 44.8%로 개선되었으나, 총 마진 가치는 소폭 감소하여 2.8백만 달러가 되었습니다. 조정된 EBITDA는 0.6백만 달러 개선되어 -0.3백만 달러로 나타났습니다. 순손실은 2024년 1분기 2.5백만 달러에서 2.0백만 달러로 줄어들었습니다.
분기가 끝난 후의 사건으로는 2.3백만 달러의 사모펀드 모집, VQA 와인 지원 프로그램에서 2.1백만 달러를 수령했으며, 부채 감소에 대한 진전을 이루었습니다. 회사는 업계 문제를 해결하고 재무 성과를 향상시키기 위한 전략을 시행하고 있습니다.
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) a annoncé ses résultats financiers pour le premier trimestre 2025 se terminant le 30 juin 2024. Le chiffre d'affaires a diminué pour atteindre 6,2 millions de dollars, contre 7,9 millions de dollars au premier trimestre 2024. La division des Vins a enregistré une augmentation de 0,4 million de dollars, tandis que la division Agence a connu une baisse de 2,1 millions de dollars. Le pourcentage de marge brute s'est amélioré pour atteindre 44,8% contre 36,8%, mais la valeur de la marge brute a légèrement diminué à 2,8 millions de dollars. L'EBITDA ajusté a progressé de 0,6 million de dollars, atteignant -0,3 million de dollars. La perte nette a été réduite à 2,0 millions de dollars, contre 2,5 millions de dollars au premier trimestre 2024.
Les événements post-trimestre comprennent un placement privé de 2,3 millions de dollars, la réception de 2,1 millions de dollars du Programme de soutien aux VQA Wines, et des progrès dans la réduction de la dette. L'entreprise met en œuvre des stratégies pour faire face aux défis de l'industrie et améliorer sa performance financière.
Diamond Estates Wines & Spirits Inc. (TSXV: DWS) berichtete über die finanziellen Ergebnisse für das 1. Quartal 2025, das am 30. Juni 2024 endete. Der Umsatz sank von 7,9 Millionen Dollar auf 6,2 Millionen Dollar im 1. Quartal 2024. Die Weinabteilung verzeichnete einen Anstieg von 0,4 Millionen Dollar, während die Agenturabteilung einen Rückgang von 2,1 Millionen Dollar erlebte. Der Bruttomargen-Prozentsatz verbesserte sich von 36,8% auf 44,8%, jedoch sank der Wert der Bruttomarge leicht auf 2,8 Millionen Dollar. Das bereinigte EBITDA verbesserte sich um 0,6 Millionen Dollar und beträgt nun -0,3 Millionen Dollar. Der Nettoverlust reduzierte sich von 2,5 Millionen Dollar im 1. Quartal 2024 auf 2,0 Millionen Dollar.
Nach dem Quartal fanden Ereignisse statt, darunter eine Privatplatzierung von 2,3 Millionen Dollar, der Erhalt von 2,1 Millionen Dollar aus dem VQA-Weinunterstützungsprogramm und Fortschritte bei der Schuldenreduzierung. Das Unternehmen setzt Strategien um, um branchenspezifischen Herausforderungen zu begegnen und die Finanzleistung zu verbessern.
- Gross margin percentage increased from 36.8% to 44.8%
- Adjusted EBITDA improved by $0.6 million
- Net loss reduced by $0.5 million compared to Q1 2024
- Successful $2.3 million private placement completed
- Received $2.1 million from VQA Wine Support Program
- Progress made on debt reduction, with non-revolving loan balance reduced to $3.0 million
- Revenue decreased by $1.7 million (21.5%) compared to Q1 2024
- Agency division sales decreased by $2.1 million due to loss of two suppliers
- Gross margin value slightly decreased by $0.1 million
- Net loss of $2.0 million reported for Q1 2025
- Uncertainty regarding the amount and timing of funds to be received from asset sales and put option agreement
Niagara-on-the-Lake, Ontario--(Newsfile Corp. - August 22, 2024) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or "the Company") today announced its financial results for the three-month period ending June 30, 2024 ("Q1 2025").
Q1 2025 Summary:
- Revenue for Q1 2025 was
$6.2 million , a decrease of$1.7 million , from$7.9 million in Q1 2024. The Winery division experienced an increase in sales of$0.4 million while the Agency division experienced a decrease of$2.1 million . The increase in sales in the Winery division is largely attributable to the VQA wine support program of$0.7 million and sales of D'Ont Poke the Bear of$0.4 million offset by bulk sales of$0.6 million and the sales from Queenston Mile Vineyard in the prior year. The decrease in the Agency division was primarily driven by the loss of two suppliers in the prior year in the amount of$2.1 million ;
- Gross margin1 as a percentage of revenue increased to
44.8% for Q1 2025 compared to36.8% in Q1 2024; however, gross margin for Q1 2025 was$2.8 million , a decrease of$0.1 million , from$2.9 million in Q1 2024. The gross margin at the Wineries increased from36.3% in Q1 2024 to47.7% in Q1 2025 as a result, of the VQA Wine support program and general margin increases across various skus in the wholesale channel as a result improving cost of goods sold and strategic price increases. The gross margin at the Agency decreased from37.4% in Q1 2024 to33.6% in Q1 2025 from the loss of a key supplier and its related revenue in the commission markets;
- Adjusted EBITDA1 increased by
$0.6 million to negative$0.3 million in Q1 2025 from a negative$0.9 million in Q1 2024. The increase is mostly the result of improving gross margin as a percent of sales and an overall decrease in SG&A expenses of$0.6 million compared to the prior year; and
- Net loss of
$2.0 million , compared to a net loss of$2.5 million in Q1 2024, includes$0.6 million of charges resulting from the debt reduction program and the rationalization of the Company's footprint.
Subsequent Event(s)
Private placement
On July 17, 2024, the Company closed a fully subscribed non-brokered private placement through the issuance of 11,466,065 common shares at an issue price of
Deferred share units ("DSUs)
In August, 2024, the Company issued an aggregate of 163,888 DSUs in settlement of
VQA proceeds
In July, 2024, the Company received the
Agreement with Renaissance Wine Merchants
On June 6, 2024, in accordance with the terms of the agreement, TBP gave written notice to exercise a put-option. As of the reporting date, the Company has received
BMO non-revolving loan repayment
Under the terms of its amended BMO credit agreement, the Company was required to have repaid all of its non- revolving term loan by May 31, 2024. As of the date of release of these unaudited interim condensed consolidated financial statements, the balance of
President's Message
"We continue to experience an unprecedented time in the beverage alcohol industry here in Canada, and around the world. With dramatic changes in the Retail landscape in our core market of Ontario, significant changes in consumer behaviour, weather related events impacting vineyards and changing government perspectives on the benefit of the wine industry to economic health - this is an exciting time to be in this industry," said Andrew Howard, President and CEO.
"We are also in the midst of significant change as a company and I am pleased to see those changes beginning to impact our financial results in a positive manner. We have initiated an aggressive series of projects to reduce debt, drive growth and improve profitability. We are well on our way to having all of the key projects come to fruition and I am excited to be part of the very capable team that is guiding these projects.
The enhanced VQA Wine Support Program, key agency and winery partnerships including with D'Ont Poke the Bear (effective in mid-May), the sale of non- strategic assets and the nimble response taken to address the expansion of beverage alcohol retailing in all Grocery and Convenience in Ontario are key projects driving the turnaround."
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 four production facilities, three 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, Shiny Apple Cider, Fresh, Red Tractor, Seasons, Serenity, Backyard Vineyards, and most recently, D'Ont Poke the Bear ("DPTB") wines and ciders.
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 Fat Bastard, Gabriel Meffre, and Andre Lurton wines from France, Merlet and Larsen Cognacs from France, Kaiken wines from Argentina, Blue Nun and Erben wines from Germany, Calabria Family Estate Wines, McWilliams Wines and Joiy Wines from Australia, Saint Clair Family Estate Wines and Yealands Family Wines from New Zealand, Cofradia Tequila from Mexico, Maverick Distillery spirits (including Tag Vodka and Barnburner Whisky) from Ontario, Talamonti, Cavit and Cielo wines from Italy, Catedral and Cabeca de Toiro wines from Portugal, Edinburgh Gin, Tamdhu, Glengoyne and Smokehead single-malt Scotch whiskies from Ian McLeod Distillers in Scotland, Islay Mist, Ryelaw, and Waterproof whiskies from MacDuff International in Scotland, C. Mondavi & Family wines including C.K Mondavi, Charles Krug, and Flat Top Hills from Napa Valley, Wize Spirits, Hounds Vodka, Walter Caesars, Glen Breton Whisky from Canada, Bols Vodka from Amsterdam, Warsteiner Beers from Germany, Koyle Family Wines from Chile, Rossi D'Asiago Limoncello from Italy and Becherovka from Czechia.
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.
For more information, please contact:
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
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.
1 See definition of selected terms under the heading "Non-IFRS Financial Measures"
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220892
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