The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q1 2023 Earnings Call Transcript December 7, 2022 5:00 PM ET Company Participants Sean Sullivan - EVP, Chief Administrative Officer and General Counsel Alex Ryan - President, CEO and Chairman Lori Beaudoin - CFO Conference Call Participants Peter Galbo - Bank of America Drew Levine - JPMorgan Greg Porter - Evercore Kaumil Gajrawala - Credit Suisse Operator Good afternoon. Thank you for attending The Duckhorn Portfolio First Quarter 2023 Earnings Conference Call. My n ...

Financial Data and Key Metrics Changes - The company reported net sales of $78 million for Q4 2022, reflecting a 10% organic increase from the prior year, driven by 7.1% volume growth and 2.9% price/mix contribution [34][44] - Adjusted EBITDA for the quarter increased by 21.3% to $22.3 million, representing 28.6% of net sales compared to 26% in the prior year [45][58] - Gross profit was $39.3 million, an increase of 14.4% year-over-year, with an adjusted gross margin of approximately 51.8%, up 280 basis points from the previous year [41][44] Business Line Data and Key Metrics Changes - The wholesale to distributor channel increased by 7.3% year-over-year, while the direct-to-consumer (DTC) channel saw a growth of 21.2% compared to the prior year [37][39] - The DTC channel's three-year CAGR was approximately 25%, fueled by successful estate releases from the Costa Brown winery [39] - The company achieved a penetration rate of 24% in its addressable market, up from 19% in the previous fiscal year [21][22] Market Data and Key Metrics Changes - The luxury wine segment, defined as wines priced at $15 and above, grew by 3.5%, contrasting with a decline of 4.5% for total wine [10][11] - The company was the fastest-growing supplier among the top 15 luxury wine suppliers, with dollar growth approximately six times greater than its scaled peers [11][12] Company Strategy and Development Direction - The company aims for high single-digit organic net sales growth over the long term, supported by strategic investments in sales and distribution [23][50] - New product innovations are planned for fiscal year 2023, including the Costa Brown Burgundy release, which sold out rapidly [27][28] - The company is focused on maintaining its leadership in the luxury wine segment while navigating macroeconomic uncertainties [32][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its core consumer base, which is more affluent and educated than the average luxury wine buyer [77] - The company anticipates some variability in month-to-month activity due to macroeconomic pressures but remains optimistic about brand strength and innovation [78][79] - The guidance for fiscal year 2023 includes net sales of $393 million to $401 million, reflecting organic growth of approximately 5.5% to 7.5% [47][49] Other Important Information - The company plans to invest in its workforce and systems to support long-term growth, with capital expenditures projected at $30 million to $35 million [47][50] - Adjusted gross margin is expected to decline by 50 to 100 basis points compared to fiscal year 2022, influenced by pricing strategies and product mix [49][56] Q&A Session Summary Question: On the SG&A step-up and macro pressures - Management indicated that the increase in SG&A is a strategic investment to enhance sales capabilities and is not solely a response to macro pressures [66][68] Question: On sales guidance for fiscal year 2023 - Management acknowledged a prudent approach to guidance, reflecting a recognition of slower growth in the luxury segment while maintaining confidence in market share gains [75][76] Question: On pricing strategy and gross margin pressures - Management confirmed that pricing adjustments are being made to offset cost increases, with ongoing evaluations of market conditions to determine further pricing actions [81][84] Question: On revenue cadence and growth expectations - Management clarified that the fourth quarter is expected to see significant growth due to strategic shipment timing, with a greater realization of gains in the back half of the fiscal year [88][90] Question: On the overall wine industry dynamics - Management emphasized the strength of the luxury segment and its ability to outperform lower-priced categories, citing premiumization trends as a key driver [95][96]

THE DUCKHORN. PORTFOLIO FOURTH QUARTER AND FISCAL YEAR 2022 FINANCIAL RESULTS SEPTEMBER 28, 2022 PARADU GREENWING CANVASBACI THE STANDARD FOR AMERICAN FINE WINE LEGAL DISCLAIMER This presentation of The Duckhorn Portfolio, Inc. (the "Company") and the accompanying conference call contain forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. These forward-looking statements generally can be identified by the use of words su ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1201 Dowdell Lane Saint Helena, CA 94574 (Address, including zip code, of Principal Executive Offices) (707) 302-2658 For the fiscal year ended July 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40240 The Duckhorn Portfolio, ...

The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q3 2022 Earnings Conference Call June 2, 2022 5:00 PM ET Company Participants Sean Sullivan - EVP, Chief Administrative Officer & General Counsel Alex Ryan - President, CEO and Chairman Lori Beaudoin - EVP and CFO Conference Call Participants Andrea Teixeira - JPMorgan Heather Gornik - Barclays Robert Ottenstein - Evercore Kevin Grundy - Jefferies Operator Greetings, and welcome to the Duckhorn Portfolio's Third Quarter 2022 Earnings Conference Call. At this time, al ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Commission file number 001-40240 The Duckhorn Portfolio, Inc. ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Saint Helena, CA 94574 (Address, including zip code, of Principal Executive Offices) (707) 30 ...

The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q2 2022 Earnings Conference Call March 10, 2022 5:00 PM ET Company Participants Sean Sullivan - EVP, Chief Administrative Officer & General Counsel Alex Ryan - President, CEO and Chairman Lori Beaudoin - EVP and CFO Conference Call Participants Kaumil Gajrawala - Credit Suisse Lauren Lieberman - Barclays Kevin Grundy - Jefferies LLC Peter Galbo - BofA Securities Filippo Falorni - RBC Capital Markets Drew Levine - JPMorgan Operator Greetings, and welcome to the Duc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40240 The Duckhorn Portfolio, Inc. (Exact name of registrant as specified in its charter) Delaware 81-3866305 (I.R.S. Employer ...

The Duckhorn Portfolio, Inc. (NYSE:NAPA) Q1 2022 Results Conference Call December 8, 2021 5:00 PM ET Company Participants Sean Sullivan - EVP, Chief Administrative Officer and General Counsel Alex Ryan - Chairman, President and CEO Lori Beaudoin - CFO Conference Call Participants Rob Ottenstein - Evercore ISI Kevin Grundy - Jefferies Filippo Falorni - RBC Peter Galbo - Bank of America Lauren Lieberman - Barclays Operator Greetings and welcome to The Duckhorn Portfolio???s First Quarter 2022 Earnings Confere ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40240 The Duckhorn Portfolio, Inc. (Exact name of registrant as specified in its charter) Delaware 81-3866305 (I.R.S. Employer ...