'Diamond Estates Wines & Spirits financial results for Q2 2024'

Home Wednesday News

Wednesday, November 22, 2023, 8:20 pm | Business Wire via QuoteMedia

Diamond Estates Wines & Spirits reports financial results for the second quarter of 2024

New strategic sales partner and recapitalization with fundraising and new bank financing

Diamond Estates Wines & Spirits Inc. ("Diamond Estates" or the "Company") (DWS-TSX Venture) today announced financial results for the three and six months ended September 30, 2023 ("Q2 2024" and "YTD 2024" respectively).

Summary for Q2 2024:

• "After improved results in the first quarter, the second quarter is broadly impacted by ongoing consumer confidence issues, global economic challenges'''and limited alcoholic beverage costs in both retail and enterprise,' said Andrew Howard, president and CEO.
• "The new investment by our largest shareholder (Lassonde Inc) is a key element of our debt reduction strategy and is a testament to their belief in the future of our business. The obvious mission is to deliver revenue growth, reduce costs and continue to improve our balance sheet," says Howard.
• "I am very pleased with the partnership we have established with Renaissance Wine Merchants in Western Canada, which has resulted in a 60% increase in sales representatives. This promises well for the work we are doing to build a national unified organization together. We see tremendous growth opportunities with''our combined agency portfolio and several new business wins to help offset the recent losses of a major supplier'.

O Diamond Estates Wines and Spirits Inc.

Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and cider and a sales agent for more than 120 spirits brands across Canada. The company operates five production facilities, four in Ontario and one in British Columbia, and produces predominantly wines with the Winery Council of the Century (VQA) under such well-known brands 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 a sales agent for many leading international brands in all regions of the country, as well as a distributor in the western provinces. These well-known brands include: Fat Bastard, Meffre, Pierre Chavin and Andre Lurton from France, Brimincourt Champagne from France, Merlet and Larsen Cognacs from France, Kaiken Wines from Argentina, Blue Nun and Erben from Germany, Calabria Family Estate Wines and McWilliams Wines from Australia, Saint Clair Family Estate Wines and Yealands Family Wines from New Zealand, Storywood and Cofradia tequilas from Mexico, Maverick Distillery spirits (including Tag Vodka and Barnburner Whisky) from Ontario, Magnum Cream Liqueur from Scotland, Talamonti and Cielo wines from Italy, Catedral and Cabeca de Toiro wines from Portugal, Waterloo beer and radler from Canada, Landshark Lager from the U.S., Edinburgh Gin, Tamdhu, Glengoyne and Smokehead single malt Scotch whiskies, Islay Mist, Grande McNish and waterproof Scotch whiskies, Family C wines. ''Mondavi & Family, 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, Collective Arts collectible beers, spirits and ready-to-drink beverages from Ontario, Koyle Family Wines from Chile and Pearse Lyons whiskey and gins from Ireland.

Predictive Statements

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of the words 'plans', 'expects' or 'does not expect', 'anticipates', 'expects', 'estimates', 'intends', 'expects' or 'does not expect', 'believes' or variations of such words and phrases, or indicate that certain actions, events or results 'may', 'may', 'could', 'might', 'could' or 'will' be taken, occur or''achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of Diamond Estates Wines and Spirits Inc.

Financial measures not included in IFRS

The Company uses net income (loss) and total income (loss) as presented in the interim condensed consolidated statements of income (loss) and total income (loss), and "EBITDA" as a measure of the Company's performance. EBITDA is another financial measure that reconciles to net income (loss) and total income (loss) in the "Results of Operations" section of the Company's MD&A.

EBITDA is'. 's supplemental financial measure, which helps to further assess the Company's ability to generate income from operations without regard to the Company's financing decisions, depreciation of property, land and equipment and amortization of intangible assets. EBITDA includes net income from sales less operating expenses before finance costs, depreciation and amortization and non-cash expenses such as stock-based compensation, one-time and other unusual expense items and income taxes. Gross profit is defined as gross profit without depreciation of property, land and equipment used in production. Operating expenses exclude interest, depreciation and amortization of property, land and equipment used in''sales and administration, and amortization of intangible assets.

EBITDA does not represent actual cash provided by operating activities and is not a recognized measure of financial performance under IFRS. Readers are advised that this measure should not be considered a substitute for those presented in the interim condensed consolidated financial statements prepared in accordance with IFRS. The Company's definitions for this non-IFRS financial measure may differ from those used by other companies.

Neither the TSX Venture Exchange nor their regulatory service provider (in terms of the policies of the TSX Venture Exchange) is responsible'