- Diamond Estates Wines & Spirits (DWS) has reported faltering revenue but improved losses in its latest quarterly report
- The company’s quarterly revenue fell 18.5 per cent to $7.3 million, when compared to the previous corresponding period
- Diamond Estates attribute the revenue drop to the impact of COVID-19, which resulted in the closure of most of the company’s private retail and on-premise accounts
- However, improved earnings led to an improved quarter-on-quarter net loss of $400,000, compared to a net loss of $800,000 in the first quarter
- Diamond Estates Wines & Spirits (DWS)is down 3.12 per cent and is trading at 16 cents per share
Diamond Estates Wines & Spirits (DWS) has reported faltering revenue but improved losses in its latest quarterly report.
The company’s quarterly revenue fell 18.5 per cent to $7.3 million, when compared to the previous corresponding period. Diamond Estates attribute the revenue drop to the impact of COVID-19, which resulted in the closure of most of the company’s private retail and on-premise accounts.
The lower revenue led to a weaker gross margin, which declined 17.9 per cent quarter-on-quarter to 2.7 million.
Despite the fall in revenue, earnings before interest, tax, depreciation and amortization increased to $300,000, compared to just 100,000 in the previous quarter. This resulted in an improved quarter-on-quarter net loss of $400,000, compared to a net loss of $800,000 in the first quarter.
Murray Souter, President and CEO commented on the company’s performance thus far this year.
“Industry conditions remained highly challenging in the fiscal first quarter as a result of COVID-19. However, we were pleased to report stronger EBITDA and a reduced net loss compared to the same period last year, as we significantly reduced our expenses.
“We are also fortunate to have a strong stable of value-priced wines and recognised brands, which have been preferred options for customers during the pandemic,” he said.
Looking forward, Murray believes the company burgeoning agreements with retailers, including the Ontario grocery channel, will help offset the impact of COVID-19 on the industry.
More recently, the company issued around 201,000 shares at 14 cents to directors of the company in order to settle first quarter renumerations in a non-cash payment.
Diamond Estates Wines & Spirits (DWS)is down 3.12 per cent and is trading at 16 cents per share at 12:30pm EDT.