VWE - Earnings call transcript Q4 2021 | Vintage Wine Estates, Inc.

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Operator

Hello, everybody. And welcome to the Vintage Wine Estates Incorporated Fiscal Year and Fourth Quarter 2021 Earnings Call. My name is Sam and I’ll be coordinating your call today. [Operator Instructions] I will now hand you over to your host, Anna Kate Heller from Investor Relations to begin. Anna Kate, please go ahead.

Anna Kate Heller

you. Thank thanks fiscal on call. year and fourth Wine joining and quarter XXXX for morning, Vintage us Estates Good earnings conference

should the of the copy have release You crossed that our wires market. earnings after yesterday, a

You wine the Direct-to-Consumer of announcing our acquisition have should specializing Vinesse, in a also company, of release copy platform clubs. a

website the Investor under you not, can they vintagewineestates.com do be heading. at If found on our Relations

during on available website that our the conversation reference today. We also have we slides will

founder Q&A during to Roney, and Terry Pat CEO; are this other are subject making be uncertainties risks overview for today the call the fiscal and risks After factors and session. DeVillers, statements filings its and imply forward-looking the on President; that could and some release outlook slides, in Wheatley, company’s Pat of results, XXXX. call Kathy questions. and which, will and Management and and today. events for are Commission. year Joining presentation Securities during actual also Terry on an statements as with that growth are in the Exchange where and the we the uncertainties we will to materially factors strategy from the for cause well the the VWE’s will CFO. fiscal provide These as These future provided other differ results open

at point in these sec.gov. useful which You that also Company’s believes measures, our some today’s or the performance. I’ll will management can find evaluating discuss call, financial non-GAAP documents website on during out we are

in with substitute in the additional GAAP. for consider this results not information should isolation or You of as a accordance prepared presentation

the in that of over and with call non-GAAP yesterday’s the turn to I’d now, can find release comparable like Wheatley. Terry GAAP to You tables reconciliations slides. And accompany measures

Terry Wheatley

conference financial a Thank everyone our call Kate. results you, And welcome first to company. as Anna public

that Vintage the are transaction X. if business for exciting completed going-public and Vintage infused successfully into turn the certainly to Wine times Wine the you would Bespoke Estates. slide capital please, combination Capital These We Now, with Estates.

be may of not wine the that the States. growing Vintage United those companies Wine For is with in familiar largest, one Estates fastest us,

acquisitions not many brands you Layer Pegase, name grown VWE, company we have B.R. This others. may in in and of of announced organically in Cameron XX last you public Firesteed, which Kunde, and recognize last night. the Hughes, know Cake, Vinesse announced the years, acquisition VWE XX of such became Cherry been a profitably this do June many likely While with just since both we time brief than decade, Cohn, two has as Bar the year. Dog, over the Pie more last the the includes Clos

have the an and model, and the infrastructure to we have and plan. the strategy, execute growth believe team aggressive acquisitive on that We organic business

and Please we In strategy. goals believe forma year in over ability grew $XX of fact, X EBITDA X. sold achieved we delivered pro our revenue to at now XXXX. for We million, Net fiscal on adjusted and our XX% the results slide XXXX our execute look on cases validate our of growth wine. million nearly fiscal

a we that grow. continue to as Importantly, leverage to scalable make and we a operating build made increasing we company, transformed public have provide organization as believe have into investments will we

transaction key the of and Our challenge burden the was a the additional XXXX. and finance business then of fiscal has closing death and and team staff. with exacerbated and sudden difficulty in employee the and going-public the of accounting combination identifying This by audit hiring been challenged

SEC reporting. new We on two have in brought seasoned personnel

waste. with team. to process continue processes implementing error the accounting and control enable outsource the look retained The and to and the to have necessary busy repeatable build finance team elimination We and of support are

expect Russell We industry, Chief strong Officer. us operational background fortunate joining and expertise, He in we well. experience are serve a as the accounting to Joy has also have will deep Operating very us

grow. Our acquisitions we also bring talent we leverage as expect forms many in that to

talk wine in to Let at growth. industry of in believe about conditions our been to omni-channel strong on positive, a outpace wines million. volume Volume presence with of growth. the industry provide how we’re wine to X% growth, a the drive We some than rate the has and the advantage slower a XXX growth albeit me increase value track domestic

trends Looking without positive, of COVID remain although the forward, growth market commentators bump. to expect the market benefit

segments. me let the Now, with from of each you review result briefly the

our segments, Wholesale well-diversified wine Wholesale, One operating priority in In key innovation channel. net over operating to while sales is year income the the increased revenue off-premise to $XX.X million million. Business-to-Business. Direct-to-Consumer benefited segment, increases have million, core from and strengths the Wholesale $XX and in brand of our $X.X X.X% decreased

by than the COVID-XX declines However, to offset the in pandemic. this was more on-premise due the

$X in nearly Some a brand. demonstrating which off-premise Dog, dollars growth now Nielsen core be sales brand on-premise to strong across include retail XX% highlights has It’s million grown and Bar channels.

successful to strategic Firesteed restrictions in with premium income similar An to has expenses to Our with exclusively mix of focus to e-grocery third The content optimization With is excellent marketplaces also XX, increasing June well, play, both, and Nielsen party of super very In fourth specific by general on the operations Wholesale digital operating strong in and administrative this and and wine due winery margin. VWE net the million. focused on had a products, XXXX, harristeeter.com, revenue get luxury a to our $XX.X conversion. cost platforms sales results overall for while our in amazon.com, group, sanitation Shipt. segment year. April pure decrease our to in had performed in helped innovation increased segment digital retailers, increasing an we X%. in eight XX% provided Wholesale launched savings, target.com, $XX.X be our segment, the which brand and some albertsons.com, XX% expand spirits. XXXX, million, contributed shelf plus with digital and in A wholesale growing new are brands size initiative, In kroger.com, to launched Instacart Business-to-Business COVID-XX year and omnichannel reflection of income Wholesale already shift the which overall our drive products e-grocery operating to increase syndication market

lower strong, us We a segment offer believe did to with for continued on the continue margin. to high-quality our customer lower this an margins in market volumes approach at opportunity with engaging connecting to segment and from offering of business is growth. We emphasis brands Mix delivered customers. share the a the average key impact

achieve well. strong million, net with by increasing increased XXXX. significant million. very growth operating QVC in XX% income expanded shift Direct-to-Consumer consumer $XX.X XX% $XX.X revenue margin COVID-XX to behavior for this our to Operating The e-commerce, as and drove Now, gains continued in wine segment nicely while segment clubs to

to both contribution engagement. platform channels virtual ‘XX SMS, in our growth rooms, were and experience weather and implementation. result while fiscal scale healthy direct good XXXX a technical COVID. Hughes to direct-to-consumer Cameron closed, this customer and were in Our with investment and events event guest email result closures, ready, of found time, channel in promotion, Tasting see fiscal continued Gains and telemarketing redesign was of the programming our our Zulily of partnerships. site despite physical record achieved marketing ‘XX on a revenue, and in to dedicated acquisition. category, drive and QVC the which highlighting the and Windsor new fiscal increased our outbound margin, gains, brand corporate addition air customer to ‘XX fiscal showed brand wine sales

Company business of a segment to strong remain expect the the with and by enhanced further driver the very We Sommelier with of growth Vinesse. DTC capabilities the our acquisition

let Pat more Now acquisitions Pat? turn to that, with results, over it recent me to the about outlook. our and talk our

Pat Roney

interest Vintage slide everyone. seven. you away Wine Estates. and We believe appreciate take Thank good I’ll are I on in three today. you, should key your Terry, morning, there points start

the strategy, our both, we year strong for through forma First, pro fiscal for execution on expectations EBITDA. our and adjusted revenue delivered of

enhancing reinforcing are finance through we And our providing to actually reach we and expectations. accounting. FYXX our and being expanding channels our such as and in organization. distribution support driven This includes This previous the is our Second, our and reaffirming creating by upside areas, multiple some are production capabilities, strategy. scalable third, guidance market, from

DTC volumes Lower buying practices. review in over a the reflected Let growth of for on in on-premise, by helped Wholesale DTC. and the segments. the me particularly the the to driven COVID, up in provide consumers Terry impact take though to year. drive results XX%, Revenue the year the was of for deeper a volume BXB That mentioned, moment their having increases also as

Kunde in was the that also April. acquisition of We had mid benefit the completed

year. revenue we combine for approximately that acquired Company fourth $X.X quarter, X% the or with in TSC, or the later contributed acquisitions June, in which You the in million Sommelier

million for the inventory Northern number as given contribution California. impacts were XX.X% on of had year. the imagine, was atypical margin. volume a to higher We might gross to you As wildfires in TSC’s on of than of the overhead There impact result with nominal. lower margin typical was the $X related a timing, This adjustment

an filing adjusted most accounting and areas. extension our XX-K expensive material Napa our report issue our because about lower two In production Sonoma file yearend this recognized for the weaknesses fact, for our processes. delay we on with the gallons million X.X difficulties of and We for to and had

reconciliations timely challenges. several hiring department months to of been and go these accounting our significance prevented accounting finding Our unfortunate as on challenges last personnel as basis. untimely of This has public transaction people. a of certain This well a the included right passing the key and finance other department somewhat occurring stressed with the the member from and

are and mentioned, team we up our As Terry processes. building the improving

implement Our the is cure quickly. to needed processes quickly goal the to deficiency

through we’ve and transaction completing our close -- X, been busy and getting going ongoing public slide to the company yearend very audit. Looking

We period reach. Wine strategically TSC, provide Vintage their We an private luxury industry and channel. through wine which events in of as for premium two in brands expert wine tasting relatively established short and in the our while completed acquisitions excellent that for can many time size small have itself the DTC education, marketing market enhances Estates. fits has also are

and our the as this wines Our cost programs On details closed. see process. we market synergies the own regarding acquisition the X, we yesterday, as marketing slide well in announced can own after that our you Vinesse utilize

XX years transaction to building We is Friday. clubs DTC and a XX,XXX has for members. wine this on nearly Vinesse has platform that over been well-established these close expect

And so, is their of their example their wine luxury market to This our distribution our synergies at an strategy to these we to wines though by work, capture we avenues wine-making in-house significant acquire and and our brands marketing many consumers. channels. expect bringing excellent cost as

our results organically and both strategy grow And plan. slide in ability execute to we are to turn you our demonstrated execute our through clearly continue our confident our If to ability believe to acquisitions. to XX, on we

fiscal United reinforce our expect consolidation pro before of the pro of that million, about this are expand We grow strength while pipeline. million us wine premium our significance enables States. transaction going-public complete to $XX to to would capital ‘XX. fragmented $XXX year robustness $XXX financial the strategy. least in accelerate and to if forma And revenue acquisitions of of don’t acquisition million we to want we ‘XX $XX EBITDA forma more fiscal million. I adjusted be will in the we market end the to disappointed transaction, at the two excited added to this With to I

to in Estates’ deliver expansion. believe at growth acquisition the generates for are our Looking strategy growth, Vintage and and reinvestment slide omni-channel growth capabilities, continued us strategy Wine ultimately cash EBITDA. flow profitability combination drivers We our enables drives of improves and have which strong strong, revenue above-market key enabled that XX,

for do executing well. been it have this very We a can number years and strategy of

for to be we player deliver a and the excited able call significant larger open in our the With to are can that, We plans much growth industry. accelerate to become Sam, questions.

Operator

Our [Operator proceed Cowen. your Vivien question is from now Azer first from your line Thank with Please open. comes Instructions] question. you. Vivien,

Vivien Azer

morning. Good you. Thank

Terry Wheatley

Good morning.

Vivien Azer

if you So, of to and you. guidance just guidance given off that any Pat organic little drivers? some the I that announced, trend bit, Thank unpack pro a was dig wanted terms color of could you forma? coming M&A and/or the just very is inorganic, into offer solid of please. in then, the specific recently Certainly, a incremental the could and components versus Terry, specifically And segment guidance

Pat Roney

component, $XX have million we where acquisition other and plenty to of our we year. important it’s a when add that opportunities and year our organic capabilities. lot have excites things to especially our me continued last of looking opportunities most we to over continue that have And But, Direct-to-Consumer that came organically, the course to I can revenue growth expect Well, like is we strong, see fiscal we are the what growth at. Vinesse of we think note significant of

I organic of And And continue combination trend. half will wouldn’t have acquisition. So, typically from growth that organic a expect to we we acquisitions. and if be and surprised growth the both, come I continue been half on

Vivien Azer

to up just incremental at on segment level, And follow please? Perfect. the color

Pat Roney

I shoulders BXB acquisition on a a in think establish will will opportunities look the growth Direct-to-Consumer then, see we significant that additional area market, to and organically the market the terms of on of of the and well, category. to the on lot be wine we then, side as And and the ways segment. in as particularly Wholesale the of Wholesale, acquisitions,

all in platforms. growth three consistent see really we So,

Terry Wheatley

in we’re right segment XX, growing and you trends X%, now. in value, some into said And know was I at Cake seeing that. that Firesteed. on to is great would see Dog at on Bar our and like X to that go going our the And XX side. outperform industry looking look just at offhand, if are saying, commentators tat looking Nielsen’s what we on Layer add, we’re We’ve up the the will talked earlier to And the X I to to Wholesale brands Pat Yes. lined conversations, going growth and it’s XX%. to some you’re X XX volume, our the that, focus at there. Wholesale at be the you’re strong be going is on right X but got exclusive to of we beat going really brands, right about up weeks BXB, have now as in

and probably about And earlier So, growth talking Direct-to-Consumer, the X BXB beat about right XX. anywhere were will between that number that spot thinking we now, we’re the on, that. on

been that those on we’ve guidance believe track segments organic all saying are we So, on along. our

Operator

line ahead. comes question next now is from Please D.A. Baker open. Our Mike from go Mike, Davidson. your

Mike Baker

Okay. Thanks. what’s up just follow A one, acquisitions, on and quick to couple real just there. of that guidance questions. One, in

about talked now you’ll you’ve two, included but think guidance historically, your only So, you do has one. three,

one, million this one just Thanks. that’s close in past. two that three, upside So, how the it’s that and So, about talked you’ve if $XXX to what’s already made to you it in that acquisition is million? think or understand would want I do acquisition? yet? $XXX already Vinesse I doesn’t Is is if you’ve but

Pat Roney

was when we the really it So, one size. of talk issue the acquisition,

will say And we guidance. have what in example where the terms like a the sometimes because looking at platform. to EBITDA very, immediately would wine there’s translate clearly that that amount tremendous we’re and upside cost we to to in of is I side in some and can -- Clearly, we perhaps, on really in evaluate of the same comfortable and And for the we create a it through in At our some guidance put later we’ll smaller that look provided certainly Vinesse our case, of cost revenue guidance additional provided, acquisitions, that reaffirming making pick-and-pack But significant and value the and guidance it’s we’re savings side in upside of with of savings. the acquisition this in acquisitions. point, synergies that classic very opportunity, year. expectations we the our that

Mike Baker

helpful. Thanks. Okay. That’s

the think, million out margin adjusted take about write-down, pressure of even color your inventory if XXX you EBITDA, some points. Second one, $X down more just on that basis was I that

was within channel each I other about -- or -- the was sounds You issue. it said think within there like, mix use mix. margins if Is or the other we BXB, that a in hurt mix is for the decline. that Because channel, by loosely mix mix least at wouldn’t that you words margins talked BXB. In segments, sort just also of it in within XXX it the disclosed of words, disclosed basis-point you each account the by

or margin something little something mix maybe the the on side? the a to on within pressures. color and Just some bit the more So, got there be mix cost has else, of

Pat Roney

tend on channels, related. be than accelerated mix at that really our on has the and be lower home they side, business couple mixed groceries So, go were go to others faster with retailers. and the and a at a into customers our clubs, chain of is the larger this independent growing shop this rate the our margins And that a and of of little side. that in some margin of wine customers higher the our and Wholesale the -- it’s are tasting related is and Direct-to-Consumer. COVID, the little margins our segments lower bit bit on margins the some segments our that room faster, are the impacted same Again, yet business, thing television less the continue by a some to much again, segment of that on-promise into on margin And BXB

the combination. So, just

The this that really key warehouse thing the note bottling production year new until that kicked other new the none efficiencies of fiscal and in of start our to expansion. is new with line

So, the the our very expect be growth in over margins, confident and coming to continue to about again, demonstrate that we quarters. EBITDA we

Mike Baker

One Okay, I helpful. if could. more,

of impact wildfires. the on Just the

it the XXXX release, So, to in the issue wildfires. the press attributes

summer. past at really has from not road down been impact expect having talked update Should had the a Can on or think, that XXXX that? you all? about wildfires from XXXX the I impact impact there raging an you at the us Thanks. similar conferences, we the any wildfires, were

Pat Roney

closest The hasn’t of our about really So, all XXX is wineries the miles to of been the fires. XXXX kind any from there away. any impact fire at

coming is harvest. high than a average, a a actually year. bit smaller no faster it’s It’s in very, we’ve but impact. little this size quality harvest good, very so, And had in bit The little

happening absent something the two, see from that. pretty next impact or of keen XXXX. we’re comfortable pretty we’re that we’ll on So, week in zero And

Mike Baker

Okay, great. turn it I’ll Thanks. somebody else. over to

Operator

question your from open. line Luke is now next Our Canaccord. Luke, proceed. Hannan from comes Please

Luke Hannan

years. are wanted morning. regards you curious that or in so. in any has XX been Okay. cohort there just just as start some order to maybe or that Thanks. seen cohort to past I’m be you’ve anything customers know if color on with you, added signed as your months are those the seen Good ordering the And to platforms. Are segment, average I customers of more would’ve And through e-commerce that specifically Direct-to-Consumer if amounts? the differences, versus that they have previous churn from with value other customers would far you you’ve still ordering up, helpful. there

Terry Wheatley

Yes. I would big any say, the really we in differences seen cohorts. haven’t

stable this size Our year. through remains average last order

So, on shift change impacted side, the really more this our any seen that, haven’t when little were wine I to except, in a bit clubs see year. last you e-commerce

side. that was And a much our in So, average bit. at brings it we our so e-commerce little or But, bit better. order have a down more size

us programs we went from of were outreach, had storm the a say did dramatic outreach, So, our up shut platforms said earlier, weather set text, doing closed, that I did while the really advertising. a set tastings, Direct-to-Consumer down, in Direct-to-Consumer COVID can we up We we room overall set wouldn’t things set really look or tasting all we Direct-to-Consumer. and year -- that had been be for the see there’s was like benefit up kinds to different at through And virtual our to some tasting -- we that But, with shift you of last in cohort place. in doing had provided. that lot really platforms the doing

Luke Hannan

helpful. Thanks. Okay. That’s

had think points impact Another I basis to guidance, EBITDA expansion. close the the it just implies margin question I on of XXX

that the big expectation sharing for in is of far are be as us the the probably over Pat, that, Station some the what months, what I Ray’s guess with production facility… curious the as just going drivers the next be to XX wouldn’t up facility, ramping course the maybe you if Just one of think mind say I would

Pat Roney

You bet, Luke.

margin line so expansion. of that in the we Xst of of occupancy new permit the or placed primary service revenue as driver of And the start gross the our And And -- we is have July new have new the of the bottling warehouse. the fiscal for the the the actually year. --

move facility. So, all we’re goods starting that our case into of to

capital but So, those we’ll expect and we years that this year, in, come see to year, last not investment come. will benefit efficiencies the only several that from

Luke Hannan

you facility as Okay. you production that to you have it, And had sort of be expect? efficiencies timeline most will how if guess fully put of to I preliminary out ramped, operating on a the how of getting and sort able soon that

Pat Roney

line We’re expectations running to days, that. with bottling currently utilization running -- I we XX% that the XX what in we’re and get new XX to would the which high-XXs. is expected growth XX% our expect the would run to at within were the and is for next consistent up

Operator

next Group. comes Our question. your from question your Telsey is line Joseph, with Joseph proceed from Feldman open. Please

Unidentified Analyst

and I on you on ‘XX provide lot more. three the picked up a the more that mean, you’re of wineries you customer-focused can acquiring acquire, to acquisitions. acquisitions, have also you three initially, on in -- a Can acquisitions. acquisitions pace like, there’s of but a lot landscape question two like I

like more share increase like at the on forward? on stuff process, what the on the you in Thank looking composition winery be thought the can the acquisition? acquisition, more acquisitions that kind Will and of or it you’re ‘XX what side, how pipeline pace looking be how both? drove the and is customer And will So, of of side, like you.

Pat Roney

make months. that very such to Direct-to-Consumer, are make Perhaps, And pipeline acquisition. Vinesse, least. those that year -- it then, eight is as which execute is acquisitions, is us to XXX% next can have another suggested And but the sure might looking we make a really good the me not year in acquisitions the make three an if only integrate. to is more to fully and we four we number robust, to So, three take look do. has history just a per we that for -- our opportunities at when there And very, at then, the look balancing acquisition, per especially for stay we

category, in to of make may be As that acquisition side, more we’ve more the an although Wholesale more focused is go-to-market on wine and We brings the to the BXB in platforms organic. distribution tends our indicated segment. us that shoulders

say opportunities I focusing to that year last the were absent for did multiple, normal pre-synergy in really -- system. year. first because are value. work COVID, a three love course, or company XX multiple for it can on of of And winery synergies that we to XX four margin XXx when bring Xx, We the perfectly And to our acquisitions a think will for and provide of the that, Kunde at first and where we would continue So, And it and fiscal EBITDA. us well the only and I and enhancement Xx within multiple on getting buy things really first we this months acquisitions that would it’s the public. we acquisition acquisition, during select by a in the us to see those

we to acquire customers we’re us will one fit question as that the other continue or a we expect, segment. said platform to going So, at to or look acquisition perhaps Direct-to-Consumer focused segment value is two such providing two get price. again, create going is a the opportunities things I XXX% the as grow we or acquisitions very, new our before, cannabis-based are as another side. acquisitions. that we number of in front winery allowing in again, into to we But, to and great very see can that are reasonable that And and it at and the a are Direct-to-Consumer Wholesale at ready-to-drink encouraged criteria our we well. But, that make I’m on where us can beverages, about where opportunities that on no look beverages priority,

Operator

next Our with comes Biolsi question. proceed open. Daniel line now your your Hedgeye. from Daniel, is question Please from

Daniel Biolsi

want seeing space and strength the you and to you the are doors in opportunity does and Can of customers? channel, that BXB speak how the Thank you in you. be, the shelf compare you the to retail are majority existing the to

Terry Wheatley

Right in Hopefully in now, of we spring conversations brands in new some are is Target in tremendous set. on, have on will them. in right so, photograph, that -- customers are for opportunity BXB. our we’re creating now we There expanding We that on SKUs. have expanding multiple go in, we SKUs

there. So, great upside

So, we currently are BXB the is as unlimited retailers, say the I in either I across on the want with some it -- big see expansion we the the are brand the would spirit say, big in opportunity requests unlimited, coming don’t of that retailers, things for desk to that but there. the because, opportunities have new programs

Daniel Biolsi

Thanks. I if follow-up. And then, could

like? you. pace And you mix how of knowledge Wholesale? to can remind Thank much us Wholesale can you you’re through channel, restaurants to is the the on-premise the difficult For gone the is, speak in what what and your in the if how of the your recovery seeing off-premise, with within has compares there,

Terry Wheatley

X% total or is company premise On less small it’s Yes. for us. and on-premise. of Overall, our

bad hurt the So, not some but maybe shutdowns, as as companies. it other us, did even did, with it

seeing the didn’t in top, rebound. the are don’t say starting let’s We are went because pandemic. -- it We to have that on really we the brands XX, the just benefited pantry-loading brands from those during that

coming and great see numbers starting of August. July out So, really we are some to

coming So, strong there. is back. we’re rebounding On-premise really

account in held up, off authorizations kind that we’re they’re will Our sure our numbers of they national during was foodservice really are down, And those big stacked I restaurants coming back hard the new distribution. on-premise. in those that of selling pandemic say, in to of team that points make seeing limited, that points or some through coming new were on-premise worked on there. the shut we look great distributions of though terms even now inventory hotels, on have

really Wholesale good very guidance in channel. the about So, we gave feeling the

through maybe We X in table will trends that saying on are. to X beat a saying commentators in are X those to what industry value. commentators -- the wine another cases X are current the and And it’s again, some we’re believe expecting going year. we’re -- we’re side of setting the in actually is March will in that and and that seeing We that August, that next robust already beat July authorizations start rebounding, to new

Operator

Our next line Davidson. Please Mike again question is now comes from open. proceed. your Mike, D.A. from Baker

Mike Baker

Thanks.

more couple a follow-ups. Just

Within or about margin of the should year, ‘XX a so reflects lot think XX.X, how You EBITDA guidance, and last the have we which EBITDA gross SG&A? XX.X line. change margin adjustments and about in versus

back to [Technical million Difficulty]. margin right within of You think Thanks. gross about What don’t down number, level guidance? margin gross But, necessarily by XX%. the and about we can SG&A, XXXX, I we annual should get the gross you your $XXX you break in if add margin them guess

Pat Roney

majority a lot But two on the has the will And looking BXB high a expand of on highest consistently the gross vineyards Those bit Vinesse has a going are of adding adjustment line, that and their and retailers grow margin were think again, more programs. a we as to to the of revenue million growth segment margin in another that and inventory side, we’re continues as very the SG&A voracious and range. look So, the $XX got Direct-to-Consumer EBITDA the in mix, gross the of kind the I gross Company on that the XX% opportunities. margin. for the the that Sommelier gross impact the well gross margin little with total obviously, basis, of company, to at wildfires. margin to XX% adjustments But

overhead. segments margins all And the we’ll after pretty range we direct kind in XX% when direct cost XX% to see to all gross corporate of out, continue it in think, net and marketing selling cost I to so, three average total

comfortable our with adjusted So, EBITDA that’s we’re why ranges.

Mike Baker

those understood. commentary freight chain, impact supply barrel qualitative, perhaps. more anything up, or I from One way one costs the follow on point, Any are Anything more Okay, color, costs? you’re think, up. in in really seeing or and retailers to inflation just issues of chain of types seeing or that inflation, those terms you’re areas? impacted, what raw many learn supply so material have

Pat Roney

work. they’re up, seeing goods trucking and it. other everybody across salary the out labor see same we’re bonuses a are and the back stay workforce of we’ve trends in secondary seeing. costs the the segments is and So, costs to increased up to ranges. some over just is are retailers and packaging not of orders the they while something no from are to again other increased question really about of But, and things glass bringing in challenges all getting are the Europe in our and what they’re we’re of And challenge new terms having, one terms Transportation I those going some of ability of get challenge. is significant doing. they’re bit world, China. that up people, in desirable, All a And getting get that’s and we and that think changes manageable, And through and are are And pricing. the some that’s the -- substantially, kind not materials of

good So, that’s a costs. thing, our wine nor or grapes

comfortable pretty we’re the that So, business. of segment on

we but manage are we’re So, expect right going -- having be through have to that all challenges industries to we the now, to those. to able continue will

Mike Baker

the additional Thanks Okay. for time.

Pat Roney

Mike. Thanks,

Operator

are questions. to any I’ll hand back no closing Roney There Pat for remarks. over now further

Pat Roney

as more forward and about us talk We to have have at some very, great exciting in hope speaking to excited to today. acquisitions as I future. you very again of Wine we’ll the as scale for hopefully joining opportunities you’re are And Vintage Have near relatively some a the soon. we we Estates. look multitude today. you more day Thank in news

Operator

today’s you call. for joining. concludes This Thank

your may disconnect You now lines.

Vintage Wine Estates (VWESQ) 29 Sep 212021 Q4 Earnings call transcript