Business
Diamond Estates Wines & Spirits Reports Q3 2019 Financial Results
Diamond Estates Wines & Spirits Reports Q3 2019 Financial Results Diamond Esta...
About this update from Diamond Estates Wines & Spirits, Inc.
[{"type":"text","content":"\n\n\n\nDiamond Estates Wines & Spirits Reports Q3 2019 Financial Results\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\nDiamond Estates Wines & Spirits Reports Q3 2019 Financial Results\nCanada NewsWire\nNIAGARA-ON-THE-LAKE, ON, Feb. 26, 2019\n\n\n\nStrong momentum in grocery and LCBO sales despite temporary challenges in export business and agency division\n NIAGARA-ON-THE-LAKE, ON, Feb. 26, 2019 /CNW/ - Diamond Estates Wines & Spirits Inc. (\"Diamond Estates\" or \"the Company\") (DWS-TSX Venture) today announced its financial results for the three and nine-month periods ended December 31, 2018 (\"Q3 2019\" and \"YTD 2019\" respectively).\nQ3 2019 Summary:\nRevenue declined to $7.4 million, compared to $10.4 million in the three-month period ended December 31, 2017 (\"Q3 2018\") due to lower export sales and the loss of two large agency suppliers, partially offset by positive momentum in the LCBO and grocery channels, the positive contribution from the acquisition of Backyard Vineyards, and the addition of new high-growth suppliers in the agency division; Gross Margin was $3.0 million, or 40.8% of revenue, compared to $4.7 million, or 45.8% of revenue, in Q3 2018, with lower revenue driving the decline in dollars and non-recurring severance revenue in Q3 2018 driving the decline in margin percentage; EBITDA declined to negative $0.2 million, compared to $1.0 million in Q3 2018, due to lower gross margin contribution and increased investment in distribution and promotional programming to expand brand presence in the LCBO channel; Sales in the Ontario grocery channel remained strong, with Diamond Estates' brands having maintained the number one market share position in grocery during the quarter, keeping the Company well positioned for the anticipated expansion of wine in grocery and convenience stores; LCBO-specific sales were strong with revenue increasing 17% and case volumes increasing 20% compared to Q3 2018, as distribution improved due to increased promotional activity and a re-vectored marketing strategy; The an...