New financial year starts off strong for Digital Wine Ventures
Online wine distribution business WineDepot recorded a 48% increase in revenue with orders and shipped cases also growing.
Digital Wine Ventures (ASX: DW8) has posted a strong first quarter for its main investment vehicle WineDepot, with revenue, sales orders and shipments exceeding achievements recorded in the previous period.
The three months to 30 September saw the online wine distribution business generate a total revenue of $400,277, representing a 48% increase on revenue in the June quarter.
It processed 12,230 orders during the quarter (representing a 58% increase on June’s total of 7,754) while the total number of cases shipped was 22,470 (up 63% from 13,825).
A total of 52 new brands were welcomed to WineDepot’s integrated trading and logistics platform from July to September, bringing the total number of brands with products listed on the platform to 126.
Double digit growth
Digital Wine Ventures chief executive officer Dean Taylor said he is pleased to kick-off a new financial year with “another quarter of double digit revenue growth”.
“While we are coming off a relatively low base, it is encouraging to see the growth in customer numbers and order volumes flowing through to the financials,” he said.
“The compounding effect of such high quarterly growth rates bodes well for a very exciting year ahead across our key metrics,” he added.
New Zealand expansion
During the quarter, Digital Wine Ventures announced WineDepot had expanded its addressable market, establishing a beachhead presence in New Zealand with the appointment of a business development manager.
Five local brands were signed up during September and there has been growing interest from other producers.
“Our investment appears to be paying off,” Mr Taylor said.
Logistics acquisition
WineDepot’s announcement earlier this month that it would acquire Wine Delivery Australia Pty Ltd may turn out to be another good move if the logistics provider’s rapid growth continues.
While currently only operating in South Australia, Wine Delivery Australia has experienced double-digit growth rates this year due to restrictions imposed in response to the COVID-19 pandemic.
Mr Taylor believes the acquisition will accelerate WineDepot’s own double-digit customer growth by providing a product that allows it to engage with producers of wines, craft spirits, craft ciders and beers across the country.
“It provides us with a unique opportunity to add another 186 brands and thousands of interesting and sought-after products to our paddock-to-plate-inspired business-to-business marketplace,” he said.
“It should allow us to launch the marketplace with substantially more brands and products than the largest three distributors in the country combined,” Mr Taylor added.