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NIAGARA-ON-THE-LAKE, Ontario, August 30, 2022–(BUSINESS WIRE)–Diamond Estates Wines
Summary of the first quarter of 2023:
First quarter 2023 profit of $7. 5 million, a cumulative of $0. 1 million over first quarter 2022 profit of $7. 4 million;
Gross margin for the first quarter of 2023 $3. 0 million, a low of $0. 1 million from $3. 1 million in the first quarter of 2022, while gross margin as a percentage of revenue was 40. 3% for the first quarter of 2023, compared to 41. 9% in the first quarter of 2022. However, considering the charge of goods sold change for the fair price of EWG shares sold, gross margin for the first quarter of 2023 $3. 32 million and increases to 43. 2% of revenue;
Negative EBITDA up to $0. 9 million in the first quarter of 2023, $1. 3 million less than $0. 4 million in the first quarter of 2022. The reduction is basically due to the reduction in expected sales of our exports and our agency, and an accumulation of administrative, general and sales expenses;
Negative adjusted EBITDA up to $0. 7 million in the first quarter of 2023 taking into account the additional fair price of EWG shares sold since March 2022; and
Net loss of $1. 6 million, compared to a net loss of $0. 4 million in the first quarter of 2022.
Throughout the first quarter, the company’s sales continued to be impacted by global conditions. The winery has noticed a resurgence of on-site and expanded distribution within the LCBO and grocery channels. Unfortunately, this expansion was offset by the weakness of the export market, with more covid restrictions imposed on China and by cancelling orders destined for Russia. The agency’s revenue continues to be hampered by a combination of global supply chain issues resulting in stock delays and supplier turnover.
Gross margin in the first quarter of 2023 increased, taking into account fair price replacements of EWG shares sold, due to contributions from the EWG acquisition. The gross margin of the company’s business decreased slightly due to higher product costs, a replacement in the composition of sales. due to limited supply, and proportionally higher retail purchases limited reduction periods.
Subsequent events:
Mandates
On July 1, 2020, 75,000 warrants issued in the past to BMO in response to the conclusion of a modified banking agreement expired without being exercised.
Dau
On August 29, 2022, the Company issued a total of 30,252 sets of deferred percentages (“UADs”) in settlement of $28,438 in deferred directors’ compensation.
Storage options
On August 29, 2022, the Board of Directors legalized the issuance of 200,000 inventory functions to a key member of management. The functions have a renegotiation value of $0. 90 and a five-year term, paying at a rate of 2cinco% consistent with the year on the anniversary date over the next four years.
Our new president and chief executive officer began his tenure on August 1, 2022: “I am thrilled to assume my new role and see wonderful opportunities for expansion and improved business results,” said Andrew Howard, President and Chief Executive Officer. my first six months as CoO of the Estate Winery business have been to consolidate the foundation of our core logos and wine portfolio through logo development, winery reporting and direct-to-consumer capabilities. “
“I am also very happy to be running a sales and import agency again. We have a wonderful portfolio of premium products from all over the world and our national team makes us a more sensible selection for suppliers. We’re further editing our amazing features in Grocery and expect to see additional rebalancing between personal and government retail outlets in the near future. Our sales team is well placed to replace and the continued resurgence of On Premise across the country.
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. es a manufacturer of high-quality wines and ciders and a sales agent for more than 120 spirits brands across Canada. The company operates 4 wineries, 3 in Ontario and one in British Columbia, which mainly produce VQA wines under recognized brands such 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 advertising division, Trajectory Beverage Partners, the company is the sales agent of many major foreign brands in all regions of the country, as well as a distributor in the western provinces. These recognizable brands come with 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, Felix Solis wines from Spain, Calabria Family Estate wines from Australia, Saint Clair Family Estate Wines from New Zealand, Redemption Bourbon and Rye whiskies from the United States, Grey Whale Gin from California, Storywood and Cofradia Tequilas from Mexico, Magnum Cream Liqueur from Scotland, Talamonti and Cielo Wines from Italy, Catedral y Cabeca de Toiro from Portugal, Waterloo Cerveza
Forward-Looking Statements
This press release contains forward-looking statements. Often, though not always, forward-looking statements can be made known by the use of words such as “anticipates”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipates”, or “believes”, or diversifications of those words and expressions or asserts that certain actions, occasions or effects “might”, “may also just”, “might also just” or “could be taken, happen or be affected. Forward-looking statements involve known and unknown risks, uncertainties and other matters that could possibly cause the actual effects, performance or achievements of Diamond Estates Wines and Spirits Inc. to be materially different from the long-term effects, performance or achievements expressed. or implied by forward-looking statements – look at the statements. Actual effects and developments are very likely to differ, and possibly differ materially, from those expressed or implied by forward-looking statements contained in this press release. These forward-looking statements are based on a number of assumptions that could possibly prove incorrect, including, but not limited to: the general economy; customer interest in Company facilities and products; money; competition; and planned and unplanned costs. While the Company acknowledges that upcoming events and developments may cause its views to change, the Company specifically disclaims any legal responsibility to update such forward-looking statements. These forward-looking statements should not be taken as the views of the Company as of any date after the date of this news release. Although the Company has attempted to identify vital points that may also cause the actual actions, occasions or effects to differ materially from those described in the forward-looking statements, there may be other points that cause the actions, occasions or effects not to be those anticipated, estimated or planned. There can be no guarantee that forward-looking statements will prove to be accurate, as actual effects and long-term events may also differ materially from those expected from such statements. Accordingly, readers do not place undue reliance on forward-looking statements.
Non-IFRS monetary measure
Management uses the net source of revenue and the comprehensive source of revenue as presented in the unaudited condensed intermediate consolidated statements of net source of revenue and comprehensive source of revenue and “EBITDA” as a measure to evaluate the Company’s performance. EBITDA is another monetary measure and is reconciled with the net source of income and the comprehensive source of income under the heading “Results of Operations” in the Discussion and Analysis of the Company’s Management.
EBITDA is an additional monetary measure to help readers evaluate the Company’s ability to generate operating cash before considering the Company’s financial decisions, the amortization of property, plants and appliances, and the amortization of intangible assets. EBITDA includes gross margin less operating prices prior to monetary expenses, depreciation and amortization, non-cash expenses such as stock-based compensation, one-time items and others, and tax cash source. Gross margin is explained as gross profit excluding depreciation and amortization of property, plant and appliances used in production. Operating expenses exclude interest, amortization of property, plant and appliances used for sale and administration, and amortization of intangible assets.
EBITDA does not constitute actual cash flows generated by operating activities, nor is it an identified measure of monetary functionality under IFRS. Readers are cautioned that this measure should not be considered as a replacement for unaudited condensed intermediate consolidated monetary statements prepared in accordance with IFRS. The Company’s definitions of this non-IFRS monetary measure may differ from those used through other companies.
Neither TSX Venture Exchange nor its Regulatory Service Provider (as that term is in TSX Venture Exchange’s policies) accepts responsibility for the adequacy or accuracy of this release.
See the businesswire. com edition: https://www. businesswire. com/news/home/20220829005769/en/
Contacts
Andrew HowardPresident and CEODiamond Estates Wines
Ryan Conte, CPA, CA, CBVCFODiamond Estates Wines