Online beverage supplier Digital Wine Ventures (ASX: DW8) has posted strong results for the three-month period ending 31 December 2020, driven by a 100%-plus increase in case and volume orders by main investment vehicle WineDepot and its recent acquisition of fourth-party logistics provider Wine Delivery Australia.
The company reported that WineDepot processed a total of 24,738 orders in the December quarter and shipped 45,252 cases – representing increases of 102% and 101% respectively on the previous three month period.
In September, the business recorded 12,230 orders and shipped 22,470 cases.
WineDepot also generated total quarterly revenue of $712,498, representing an increase of 78% on the $400,277 generated in the first quarter of the 2021 financial year.
First month of revenue
The figures include the first month of revenue from South Australian-based fourth-party logistics provider Wine Delivery Australia, acquired in October for $2.4 million.
The acquisition was designed to accelerate WineDepot’s market presence by welcoming another 180 new customers to its cloud-based trading, logistics and order management platform.
It has contributed to WineDepot boosting customer numbers in the December quarter by 239 and adding another 300 new brands to the platform.
The new customers include several wine producers across the New Zealand market, after WineDepot established a beachhead presence in that country in September.
Digital Wine Ventures said many of these producers are still in the process of being onboarded due the time involved in consolidating, shipping, landing and clearing inventory through customs.
Chief executive officer Dean Taylor said he was pleased with WineDepot’s consistently strong results.
“We’ve had an amazing start to this financial year with significant growth seen across all key metrics,” he said.
“The acquisition of Wine Delivery Australia has certainly helped lift customer, order and case volume growth rates from double to triple digits [however] it is important to note that our underlying organic growth is still very strong and highly likely to be bolstered again by the launch of our [direct-to-trade] marketplace in March.”
Originally scheduled for late-2020, Mr Taylor announced in October that the launch would be postponed to allow for the integration of Wine Delivery Australia and its customers, and also to bypass the 2020 lockdown of Victoria’s hospitality industry – one of of the country’s largest markets for fine wine and craft beverages.