Diamond Estates Wines & Spirits Reports Fiscal 2025 Financial Results

Core Insights - Diamond Estates Wines & Spirits Inc. reported financial results for the fiscal year 2025, showing a revenue decrease but improvements in gross margin and EBITDA [1][6][9]. FY 2025 Summary - Total revenue for FY 2025 was $24.5 million, down from $28.5 million in FY 2024, a decrease of $4.0 million [6]. - The Winery division saw an increase in sales of $2.3 million, while the Agency division experienced a decrease of $6.3 million [6]. - Gross margin as a percentage of revenue improved to 52.7% in FY 2025 from 40.7% in FY 2024, with gross margin increasing by $1.3 million to $12.9 million [6]. - EBITDA increased by $6.8 million to positive $1.1 million in FY 2025 from a negative $5.7 million in FY 2024 [6]. - Net loss decreased from $10.7 million in FY 2024 to $2.5 million in FY 2025 [6]. Q4 2025 Summary - Total revenue for Q4 2025 was $4.2 million, a decrease of $1.3 million compared to Q4 2024 [6]. - Gross margin for Q4 2025 was $2.3 million, down from $3.7 million in Q4 2024, with gross margin as a percentage of revenue at 55.0% compared to 67.3% in Q4 2024 [6]. CFO Transition - Basman Alias has been appointed as the new Chief Financial Officer, effective August 27, 2025, succeeding Ryan Conte [4][5][7]. - Ryan Conte's departure was a planned transition, and he may consult with Lassonde Industries Inc., the largest shareholder of Diamond [5]. Strategic Developments - The company has benefited from retail expansion, government support, and a growing consumer preference for Canadian wines, which positively impacted the Winery division [6][9]. - Recent acquisitions, including the D'Ont Poke the Bear brand and the Perigon Beverage Group sales agency, align with the company's strategy to diversify and strengthen its business [9].