VWE - Earnings call 1 2024 | Vintage Wine Estates, Inc.

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Operator

Good afternoon. Thank you for attending today's Vintage Wine Estate's First Quarter Fiscal Year '24 Financial Results. My name is Hannah, and I will be your moderator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Deborah Pawlowski, Investor Relations with Vintage Wine Estates.

You may go ahead.

Deborah Pawlowski

afternoon, good and Hannah, everyone. Thanks, your We in and interest today Wine certainly Estates. appreciate Vintage your time

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Seth Kaufman

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Kristina Johnston

was the sale quite as with cases or place due point rationalization million $X.X X% of XX,XXX was Slide a XX% weakness Cherry sales strong strong key review came looking this by expect revenue the a was to margin largest as XXXX driven out digital down is did DXC spring, up $X half saw and to the in for were for to restructuring segment, Pie, or Cider million X%. price begin last brand million Note $XX.X of stock well wholesale up previous improvements sales that Sommelier the of about in this a will of related for and BXB and The program wholesale little quarter Company, $X down offset when over margins. Wholesale in Encouragingly, was from in shipments is volume the wholesale. was of sales large are were the the This or XXXX. slow out the performance timing down don't I wine until capture early Case declines I to of $X.X due in X%. the bulk SKU the core Kunde. distilled my efforts. ACE charges primarily including in international business. BXB our lower Seth. the at in with tough Bar rooms to down a and brands, more against in XX%. realized business first of had decline impacts We offset were Dog, spirit making sum. offset wine the We lump marketing dollars by tasting of of quarter-by-quarter expected Thanks, benefited we million we impact summer in that as $X.X million. year Revenue product on a Strength these was quarter earlier quarter through put by million or shipment. our year's largely was ACE our we sales. sales DTC to of as as being should the and X. reduction to in This quarters. that comparator in price This million. resume managed Also, shipped to is quarter quarter somewhat than helped improvements in private late comp up the about were couple of revenue relatively program attributable label brand approximately externally was with was Firesteed brands to up volumes unchanged. These offset period. slowing the The Dragon as that improving impact the $XX House that XX% clubs.

basis to efficiencies improved Five-Point the realized. productivity year margin declined $X.X sequentially Gross million turn Plan down as trailing higher are resulting XXX Slide the quarter, was gross Compared Gross Let's from prior basis XXX margin points. profit did and pricing, fourth with points. We improvement see the period. compared with X.

continue see cash. to generating are year. expansion in expect margin advance gross through and We we of transition this improvement as to on elements Five-Point our margin Plan Two

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in on corporate adjusted last EBITDA losses while up was ago. earlier, $X.X mentioned million, remaining Interest higher compared million reduce $X.X simplify the rates. fiscal with and work we segment EBITDA of year in up of business expense restructuring impacting in $XXX,XXX reflecting of Encouragingly, attributable SKUs. it realized was loss the was the the costs the I down quarters million quarter the areas. Net to approximately expense. approximately were with X is common 'XX Adjusted the as to million $XX $X impact million As stockholders the restructuring wholesale interest other the $X.X from

on have through cash can drive improvement sufficient the of our our capitalization. Turning year we generation plan as believe More XX. for throughout progress. work our Slide flush this to we margin will We to execute improve liquidity discuss liquidity transition year. we to to and as actions We

for on us as strategy focus, renewed envisaged expect We enter position delivering will plan we and the XXXX. go-forward that fiscal

that to are in working growth. leadership extensive all focus experience profitable his this looking under enterprises develop and vision drive We forward given consumer Seth's to building

will amended we and not as The flexibility includes add-backs. EBITDA through $XX required the of lending I remain provides us builds lending should sweep calculation our to agreement such the compliance of below report. such the are point but credit we at that so account, minimum regards were quarter. agreement year, the also agreement the Our cash of Certain same million. out EBITDA end also requires covenants that as is balances what in in greater under cash a covenants It the additional

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add that on purposes. I on split. thought background are are We required to the some proposal efficiencies provide revenue-generating, that reverse investments stock it regarding compliance are focused the for and worthwhile shareholder

Our our executing and focus is to costs cash plan, pay debt. generating on reducing down

risks our our thereto, absolutely compliance, also, in developing and proxy that a being requirement NASDAQ are if not a is believe the information to related management stock stock minimum risk will requires including reverse shareholder NASDAQ's progress tool definitive stockholders' our as be ready mentioned, and listing. be to and connection approval on in reverse long-term order return strategy. need maintain recognize does would upcoming anticipated Seth our to imply necessary, filed We a to we found bid with More would we proposal of can believe with in capital split, and We The mitigation improvements the effects to regain split any $X. The markets like imminent. Board and meeting. with compliant

If you will I turn to Seth. turn will back it Slide to XX,

Seth Kaufman

really about work ahead. Kris. excited Thanks, the I'm

I passionate wineries which we excitement the energized profitable business. a While I know of great right I open a can certainly believe is heritage to solid build foundation have been team from our brands for believe more I a enterprise, be many of you the focused, each and member, we are value. there's teams hope team haul much a and significant long be. With with we right every From done, drive for we our stronger, has point. to that what line to and our dynamic the long-term and can we that and already directions this can you, questions. but see most sense that, starting have can leadership our this we for yet to for

Operator

call Instructions] any at no time, to over are Kaufman There waiting the [Operator Seth questions so for I remarks. this will turn closing

Seth Kaufman

and and much. And in as today. joining so you out interest this progress with on for future. Please your have. thank forward continuing our us to look reach to for team you, Estates really follow-up Wine through advance feel transition questions Investor plans free everyone, you Thanks our and create appreciate keep We our to any updated we year Vintage our may to vision Relations

including formal my across interactions deep dive I analysts. into business our the important and investors remarks, As mentioned my in includes all stakeholders,

later in December. will We introductory be calls scheduling

if me, a interested in with day. Deb much I So please of let you're rest so great and meeting have know. Thanks hope your you

Operator

Wine you Vintage 'XX That today's concludes Results Thank Quarter First Fiscal Call. Financial participation. your Year Estates for

now may your disconnect lines You

Vintage Wine Estates (VWESQ) 14 Nov 232024 Q1 Earnings call transcript