Diamond Estates Wines & Spirits Reports Fiscal 2025 Financial Results

Executive Summary

• Diamond Estates Wines & Spirits Inc. released its financial results for the fiscal year ended March 31, 2025 (FY 2025) and the fourth quarter ended March 31, 2025 (Q4 2025), noting that audit procedures delayed the release.
• The company reported a significant turnaround in profitability, moving from a net loss to a reduced net loss, with EBITDA turning positive for the first time in the reported periods.
• Revenue declined year-over-year due to the loss of a key supplier and the sale of Western Canada operations, though the Winery division saw growth driven by retail expansion and the D'ont Poke the Bear transaction.
• The company announced the appointment of Basman Alias as the new Chief Financial Officer, replacing Ryan Conte.

Key Details

• FY 2025 Financials:
  • Revenue: $24.5 million (down $4.0 million from $28.5 million in FY 2024).
  • Gross Margin: $12.9 million (up from $11.6 million in FY 2024); margin percentage increased to 52.7% from 40.7%.
  • EBITDA: Positive $1.1 million (up from negative $5.7 million in FY 2024).
  • Adjusted EBITDA: Positive $0.8 million (up from negative $1.8 million in FY 2024).
  • Net Loss: $2.5 million (down from $10.7 million in FY 2024).
• Q4 2025 Financials:
  • Revenue: $4.2 million (down $1.3 million from Q4 2024).
  • Gross Margin: $2.3 million (down from $3.7 million in Q4 2024); margin percentage was 55.0% compared to 67.3% in Q4 2024.
  • Note: Q4 revenue and margin decreases were partially attributed to the timing of VQA rebate revenue accruals.
• Division Performance:
  • Winery Division: Sales increased by $2.3 million in FY 2025. Gross margin rose from 42.9% to 50.4%, driven by the VQA Wine support program and SKU margin increases.
  • Agency Division: Sales decreased by $6.3 million in FY 2025, driven by the loss of a key supplier ($2.1 million) and the sale of Western Canada operations to Renaissance (offset by the acquisition of Perigon). Agency gross margin increased to 69.6% from 36.2% due to a shift toward commission sales.
• Subsequent Events:
  • April 2025: Issued 221,250 DSUs to settle $44,250 of accrued deferred directors compensation.
  • April 2025: Received $500,000 mortgage receivable from the QMV sale, used to reduce the non-revolving term loan.
  • June 2025: Received $3.1 million from the VQA Wine Support program.
• Management Changes:
  • Basman Alias appointed as CFO, officially replacing Ryan Conte on August 27, 2025.
  • Ryan Conte’s departure is stated as mutually planned and unrelated to the audit delay.

Notable Quotes

• Andrew Howard, President and CEO: "The Company has made a remarkable turnaround over the past year, with continued improvements quarter by quarter culminating in much stronger full-year results. Last year, we set a goal of achieving positive EBITDA and reducing interest expense, and this fiscal year we have delivered on that goal."