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Diamond Estates Wines & Spirits Reports Q2 2022 Financial Results
Foundation set for future organic growth Niagara-on-the-Lake, Ontario--(Newsfile Corp. - Nove...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"Diamond Estates Wines & Spirits Reports Q2 2022 Financial ResultsFoundation set for future organic growthNiagara-on-the-Lake, Ontario--(Newsfile Corp. - November 25, 2021) - - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) (\"Diamond Estates\" or \"the Company\") today announced its financial results of position for the three and six months ended September 30, 2021 (\"Q2 2022 and \"YTD 2022\" respectively).Q2 2021 Summary: Revenue for Q2 2022 was $7.1 million, a decrease of $0.1 million from Q2 2021 revenue of $7.2 million, due to softness experienced in the months of July and August in the Agency Business from a combination of delayed orders by provincial retailers in commission markets and supply chain delays in Western Canada. The softness in the Agency Business was offset by increased sales within the winery division. The elimination of some of the COVID pandemic restrictions resulted in the reopening of many on-premise and private retail accounts nationally in addition to the resumption of export orders from overseas distributors. Gross margin for Q2 2022 was $2.7 million, a decrease of $0.4 million from $3.1 million in Q2 2021, and gross margin as a percentage of revenue was 38.1% for Q2 2022 compared to 43.0% in Q2 2021. The shift in sales mix from commission to buy/sell markets and supply constraints in the Agency Business resulted in the gross margin in the Agency business decreasing from 44.0% YTD 2022 to 38.0% YTD 2022.; EBITDA was $(0.2) million in Q2 2022, a decrease of $1.0 million from $0.8 million in Q2 2021, largely a result of the decrease in gross margin and an increase in employee compensation of $0.4 million. The increase in employee compensation is directly attributable to the reduction in government relief funding received this year versus last year; andNet loss was $1.0 million, compared to a net loss of $0.4 million in Q2 2021.The Company experienced increasing sales in the Winery Business but also some softness in the Agency Business in Q2 FY2022. The strength in the Winery Business persisted throughout the second quarter even with the sales continuing to be impacted by government-mandated restrictions. While further restrictions were lifted during Q2 2022, the Company expects sales to continue to be impacted by COVID-19 measures especially with domestic and international travel and supply disrupt...