Vintage Wine Estates, Inc. Stock Price, News & Analysis

Vintage Wine Estates (Nasdaq: VWE, VWEWW) has announced the release of its fiscal year 2023 financial results on May 10, 2023, after market close. The report will include results for the second and third quarters, as well as restated first-quarter results. The decision to consolidate reporting was driven by finalization of impairment charges and adjustments related to their captive insurance company. Preliminary revenue for the nine-month period is anticipated to be between $223 million and $225 million, with operating losses expected at $158 million to $162 million due to impairment and severance costs. Current cash as of March 31, 2023, stands at $32 million. A conference call will follow the financial results release, detailing ongoing plans to improve revenue and cut costs.

Vintage Wine Estates (Nasdaq: VWE and VWEWW) announced significant non-cash impairment charges for Q2 fiscal 2023, projected between $130 million and $145 million. This includes $120 million to $130 million in goodwill impairments due to underperformance in wholesale and B2B segments and a $10 million to $15 million write-down for trademark assets related to the Layer Cake brand and ACE Cider business.

As of March 31, 2023, VWE reported $308 million in total debt and $25 million in cash, with $40 million available through a revolving credit facility. Recent cost-cutting measures have resulted in an annualized profit improvement of $10 million. The company plans to file its Q2 financial results by the end of April 2023.

Vintage Wine Estates (Nasdaq: VWE, VWEWW) announced an extension to finalize its processes for the second quarter of fiscal 2023. The company now expects to file its amended first quarter 2023 10-Q and report second quarter results by April 30, 2023. Previously released financial statements for the first quarter are no longer reliable due to identified impairment indicators requiring further independent analysis. VWE is one of the largest U.S. wine producers, selling over two million cases annually and focusing on luxury wines priced between $10 and $20.

Vintage Wine Estates, Inc. (NASDAQ: VWE and VWEWW) has completed the sale of the Tenma Vineyard, a 42-acre property in Calistoga, California, for approximately $11 million. The funds will be utilized to reduce outstanding debt. Following this transaction, the company retains ownership or leases around 2,400 vineyard acres, with 1,600 acres owned. Additionally, VWE entered into a grape purchase agreement for cabernet sauvignon grapes with no initial cost. This divestiture aligns with VWE's strategy to monetize assets for debt reduction and enhance financial flexibility as part of its recent business realignment plan.

On March 9, 2023, Stuntman, a Manhattan-based hospitality PR agency, was named the Agency of Record for the Italian Trade Agency’s Food & Wine Campaign in the U.S. The initiative, running throughout 2023, aims to enhance the perception of Italian wine and food while educating American consumers about authentic Made in Italy products. Key markets include New York City, Dallas, Houston, Los Angeles, San Francisco, Chicago, and Washington, D.C. The campaign will also advocate for protected products over counterfeits. Stuntman currently represents esteemed Italian brands such as Parmigiano Reggiano and Balsamic Vinegar of Modena.

Vintage Wine Estates, Inc. (Nasdaq: VWE, VWEWW) announced it received a notice from Nasdaq on February 13, 2023, regarding non-compliance with timely filing requirements after failing to submit its Quarterly Report on Form 10-Q for the period ended December 31, 2022. Despite this, the notice does not immediately affect trading, and the company expects to regain compliance within 60 days. The delay was due to impairment indicators identified late in the financial reporting process. VWE aims to file the overdue Form 10-Q by mid-March 2023, following an amendment to its previous report for the quarter ended September 30, 2022.