Diamond Estates Wines & Spirits Reports Q2 2024 Financial Results

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A new Strategic Sales Partner and recapitalization with an Equity Raise and New Bank Financing

NIAGARA-ON-THE-LAKE, Ontario — Diamond Estates Wines & Spirits Inc. (“Diamond Estates” or “the Company”) (DWS-TSX Venture) today announced its financial results of position for the three and six months ended September 30, 2023 (“Q2 2024 and “YTD 2024” respectively).

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Q2 2024 Summary:

• Revenue for Q2 2024 was $7.8 million, a decrease of $1.4 million, from $9.2 million in Q2 2023. The decrease in sales year over year resulted from the Winery experiencing a decrease in sales of $0.9 million and the Agency division by $0.5 million. The declines in the Winery division were driven by excise taxes of $0.2 million and a decrease in sales across several channels including exports, liquor boards, grocery and on-site retail. The decline in the Agency division was primarily driven by softness experienced in Western Canada;
• Gross margin¹ for Q2 2024 was $3.1 million, a decrease of $0.5 million, from $3.6 million in Q2 2023 while gross margin as a percentage of revenue was 39.6% for Q2 2024 compared to 38.7% in Q2 2023. However, when factoring the adjustments to cost of goods sold for the fair value of EWG inventories sold, gross margin for Q2 2024 remained unchanged while Q2 2023 was $3.8 million and 41.1% of revenue. The decrease in gross margins for the period was from the Winery experiencing a decrease of $0.4 million and the Agency division by $0.1 million. When considering the non-recurring impacts of the inventory provision and net impact of the excise tax and winery support…