Diamond Estates Wines & Spirits Reports Q3 2025 Financial Results
Diamond Estates Wines & Spirits (TSXV: DWS) reported Q3 2025 financial results with revenue of $6.4 million, down from $7.3 million in Q3 2024. The Winery division saw a $1.3 million increase in sales, while the Agency division decreased by $2.2 million. Gross margin improved significantly to 57.5% from 26.3% year-over-year.
The company achieved positive EBITDA of $1.4 million, compared to negative $4.1 million in Q3 2024. Adjusted EBITDA turned positive at $0.6 million, up from negative $1.7 million. Net income reached $0.5 million, versus a $5.2 million loss in Q2 2024.
The improved performance was driven by the Ontario government's expansion of alcohol sales to convenience, grocery, and big-box stores, along with the VQA wine support program contributing $1.0 million. The company's D'Ont Poke the Bear brand showed strong performance in the wholesale channel.
Diamond Estates Wines & Spirits (TSXV: DWS) ha riportato i risultati finanziari del terzo trimestre 2025 con un fatturato di 6,4 milioni di dollari, in calo rispetto ai 7,3 milioni di dollari del terzo trimestre 2024. La divisione Winery ha registrato un aumento delle vendite di 1,3 milioni di dollari, mentre la divisione Agency è diminuita di 2,2 milioni di dollari. Il margine lordo è migliorato significativamente, passando dal 26,3% al 57,5% su base annua.
L'azienda ha raggiunto un EBITDA positivo di 1,4 milioni di dollari, rispetto a un EBITDA negativo di 4,1 milioni di dollari nel terzo trimestre 2024. L'EBITDA rettificato è diventato positivo a 0,6 milioni di dollari, in aumento rispetto a un negativo di 1,7 milioni di dollari. L'utile netto ha raggiunto 0,5 milioni di dollari, rispetto a una perdita di 5,2 milioni di dollari nel secondo trimestre 2024.
Le migliori performance sono state guidate dall'espansione del governo dell'Ontario nelle vendite di alcolici nei negozi di convenienza, nei supermercati e nei grandi magazzini, insieme al programma di supporto per i vini VQA che ha contribuito con 1,0 milione di dollari. Il marchio D'Ont Poke the Bear dell'azienda ha mostrato una forte performance nel canale all'ingrosso.
Diamond Estates Wines & Spirits (TSXV: DWS) reportó los resultados financieros del tercer trimestre de 2025 con ingresos de 6,4 millones de dólares, una disminución desde los 7,3 millones de dólares en el tercer trimestre de 2024. La división Winery experimentó un aumento en las ventas de 1,3 millones de dólares, mientras que la división Agency disminuyó en 2,2 millones de dólares. El margen bruto mejoró significativamente al 57,5% desde el 26,3% en comparación anual.
La compañía logró un EBITDA positivo de 1,4 millones de dólares, en comparación con un EBITDA negativo de 4,1 millones de dólares en el tercer trimestre de 2024. El EBITDA ajustado se volvió positivo con 0,6 millones de dólares, en comparación con un negativo de 1,7 millones de dólares. El ingreso neto alcanzó los 0,5 millones de dólares, frente a una pérdida de 5,2 millones de dólares en el segundo trimestre de 2024.
El rendimiento mejorado fue impulsado por la expansión del gobierno de Ontario en la venta de alcohol en tiendas de conveniencia, supermercados y grandes almacenes, junto con el programa de apoyo a los vinos VQA que contribuyó con 1,0 millón de dólares. La marca D'Ont Poke the Bear de la compañía mostró un fuerte rendimiento en el canal mayorista.
다이아몬드 에스테이트 와인 & 스피리츠 (TSXV: DWS)는 2025년 3분기 재무 결과를 보고하며, 수익이 640만 달러로 2024년 3분기의 730만 달러에서 감소했다고 전했습니다. 와이너리 부문은 130만 달러의 판매 증가를 보였고, 에이전시 부문은 220만 달러 감소했습니다. 총 마진은 전년 대비 26.3%에서 57.5%로 크게 개선되었습니다.
회사는 140만 달러의 긍정적인 EBITDA를 달성했으며, 2024년 3분기의 -410만 달러와 비교됩니다. 조정된 EBITDA는 -170만 달러에서 60만 달러로 긍정적으로 전환되었습니다. 순이익은 50만 달러에 달했으며, 2024년 2분기의 -520만 달러 손실과 비교됩니다.
개선된 성과는 온타리오 주 정부의 편의점, 식료품점 및 대형 매장에서의 주류 판매 확대와 VQA 와인 지원 프로그램이 100만 달러 기여한 덕분입니다. 회사의 D'Ont Poke the Bear 브랜드는 도매 채널에서 강력한 성과를 보였습니다.
Diamond Estates Wines & Spirits (TSXV: DWS) a publié ses résultats financiers pour le troisième trimestre 2025, avec un chiffre d'affaires de 6,4 millions de dollars, en baisse par rapport à 7,3 millions de dollars au troisième trimestre 2024. La division Winery a connu une augmentation des ventes de 1,3 million de dollars, tandis que la division Agency a diminué de 2,2 millions de dollars. La marge brute s'est considérablement améliorée, passant de 26,3 % à 57,5 % d'une année sur l'autre.
L'entreprise a réalisé un EBITDA positif de 1,4 million de dollars, contre un EBITDA négatif de 4,1 millions de dollars au troisième trimestre 2024. L'EBITDA ajusté est devenu positif à 0,6 million de dollars, contre un négatif de 1,7 million de dollars. Le revenu net a atteint 0,5 million de dollars, contre une perte de 5,2 millions de dollars au deuxième trimestre 2024.
Cette performance améliorée a été soutenue par l'expansion des ventes d'alcool par le gouvernement de l'Ontario dans les magasins de proximité, les épiceries et les grands magasins, ainsi que par le programme de soutien aux vins VQA qui a contribué à hauteur de 1,0 million de dollars. La marque D'Ont Poke the Bear de l'entreprise a montré de solides performances dans le canal de gros.
Diamond Estates Wines & Spirits (TSXV: DWS) hat die finanziellen Ergebnisse des dritten Quartals 2025 mit einem Umsatz von 6,4 Millionen Dollar bekannt gegeben, was einem Rückgang von 7,3 Millionen Dollar im dritten Quartal 2024 entspricht. Die Weinabteilung verzeichnete einen Anstieg der Verkäufe um 1,3 Millionen Dollar, während die Agenturabteilung um 2,2 Millionen Dollar zurückging. Die Bruttomarge verbesserte sich erheblich von 26,3% auf 57,5% im Jahresvergleich.
Das Unternehmen erzielte ein positives EBITDA von 1,4 Millionen Dollar, im Vergleich zu einem negativen EBITDA von 4,1 Millionen Dollar im dritten Quartal 2024. Das bereinigte EBITDA wurde mit 0,6 Millionen Dollar positiv, nachdem es zuvor bei -1,7 Millionen Dollar lag. Der Nettogewinn erreichte 0,5 Millionen Dollar, im Gegensatz zu einem Verlust von 5,2 Millionen Dollar im zweiten Quartal 2024.
Die verbesserte Leistung wurde durch die Ausweitung des Verkaufs von Alkohol durch die Regierung von Ontario in Convenience-Stores, Lebensmittelgeschäften und großen Einzelhandelsgeschäften sowie durch das VQA-Weinunterstützungsprogramm, das 1,0 Millionen Dollar beitrug, vorangetrieben. Die Marke D'Ont Poke the Bear des Unternehmens zeigte eine starke Leistung im Großhandelskanal.
- Gross margin improved dramatically to 57.5% from 26.3% YoY
- EBITDA turned positive at $1.4M from -$4.1M in Q3 2024
- Net income reached $0.5M, reversing previous quarter's $5.2M loss
- Winery division sales increased by $1.3M
- VQA wine support program contributed $1.0M to sales
- Overall revenue decreased by $0.9M to $6.4M
- Agency division sales declined by $2.2M
- Loss of key supplier impacted Agency division by $2.1M
Niagara-on-the-Lake, Ontario--(Newsfile Corp. - February 20, 2025) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or "the Company") today announced its financial results of position for the three and nine months ended December 31, 2024 ("Q3 2025 and "YTD 2025" respectively).
Q3 2025 Summary:
- Revenue for Q3 2025 was
$6.4 million , a decrease of$0.9 million , from$7.3 million in Q3 2024. The Winery division experienced an increase in sales of$1.3 million while the Agency division experienced a decrease of$2.2 million . The increase in sales in the Winery division is largely attributable to the increase in sales in the wholesale channel, mostly from D'Ont Poke the Bear and$1.0 million from the VQA wine support program. The increase in sales is a direct result of the Ontario's government announcement to expand the marketplace to convenience, grocery and big-box stores. The decrease in the Agency division was primarily driven by the loss of a key supplier in the prior year in the amount of$2.1 million and the sale of the Western Canadian Agency business which has been offset by the acquisition of Perigon Beverage Group;
- Gross margin1 as a percentage of revenue was
57.5% for Q3 2025 compared to26.3% in Q3 2024 and gross margin increased by$1.8 million from$1.9 million in Q3 2024 to$3.7 million for Q3 2025. The Winery division experienced an increase of$1.9 million while the Agency declined by$0.1 million . The gross margin in the Winery division increased from30.5% in Q3 2024 to57.1% in Q3 2025 as a result of the VQA Wine support program and general margin increases across most skus. The gross margin at the Agency increased from19.9% in Q3 2024 to61.9% in Q3 2025 due to the sale of the Western Canadian Agency and the increase in commission based sales compared to third party wines and spirits;
- EBITDA1 increased by
$5.5 million to positive$1.4 million in Q3 2025 from a negative$4.1 million in Q3 2024. Adjusted EBITDA1 increased by$2.3 million to positive$0.6 million in Q3 2025 from a negative$1.7 million in Q3 2024. Both EBITDA and Adjusted EBITDA1 increases are attributed to improving gross margins in the Winery division and an overall decrease in SG&A expenses of$0.6 million compared to the prior year; and
- Net income was
$0.5 million , compared to a net loss of$5.2 million in Q2 2024.
Subsequent Events:
- In February, 2025, the Company issued an aggregate of 221,875 DSUs in settlement of
$44,375 of previously accrued deferred directors compensation.
President's Message
"The change in the Ontario alcohol landscape continues to have a dramatic impact on our Winery results and we are strategically aligned to seize the opportunity. We anticipate these changes will continue to benefit the Winery in the coming quarter and fiscal year as more grocery stores come on-line. With the potential tariffs threats fanning fierce Canadian patriotism, we expect even stronger demand for
"One of our VQA brands, D'Ont Poke the Bear, is a flag bearer representing Canadian pride with it's "polite until poked" anti bullying tagline and over
"Additionally, we are now seeing strong year-over-year improvements in our Agency business with the acquisition of Perigon Beverage Group and the additional organic growth from new business wins and our established brand representations."
Andrew continued to say, "Combined, our business has posted a remarkable turnaround with dramatic year over year improvements and consistently improving results over the first three quarters of this fiscal year. As a company, we are very well positioned to benefit from new government policies and the opening up of additional grocery, big box and convenience stores."
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, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, Serenity 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. These recognizable brands include Fat Bastard, and Gabriel Meffre wines from France, Brimoncourt Champagne from France, Rossi D'Asiago Limoncello from Italy, Kaiken wines from Argentina, Blue Nun and Erben wines from Germany, Kings of Prohibition and McWilliams Wines from Australia, Yealands Family Wines and Joiy Sparkling wine from New Zealand, Cofradia Tequilas from Mexico, Maverick Distillery spirits (including Tag Vodka, Ginslinger Gin and Barnburner Whisky) from Ontario, Cavit, Talamonti and Cielo wines from Italy, Porta 6, Julia Florista, Catedral and Cabeca de Toiro wines from Portugal, Edinburgh Gin, Tamdhu, Glengoyne and Smokehead single-malt Scotch whiskies from Scotland, Islay Mist and Waterproof blended Scotch whiskies from Scotland, Glen Breton Canadian whiskies, C.K Mondavi & Family, Line 39, Harken, FitVine and Rabble wines from California & Charles Krug wines from Napa Valley, Hounds Vodka from Canada, Bols Vodka from Amsterdam, Koyle Family Wines from Chile, Rodenbach beer from Belgium, La Trappe beer from the Netherlands, and Tequila Rose Strawberry Cream, Five Farms Irish Cream Liqueur, Broker's Gin, Hussong's Tequila, 360 Vodka and Holladay Bourbon from McCormick Distilling International.
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/241742
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