- DW8 (DW8) tables operating revenue of $4.6 million in Q3 FY22, down 15 per cent on Q2 but up 497 per cent from the prior corresponding period (pcp)
- Active suppliers increased 321 per cent from the pcp to 1178, while DW8 shipped 313,000 cases — down 18 per cent from the prior quarter but up 393 per cent on the pcp
- In the quarter, DW8 launched an initiative to merge four brands and operating entities under the Kaddy brand to deliver material savings and generate additional revenue
- DW8 posted nearly $3 million in net cash outflows in the quarter and ended the period with $7.74 million in total available funding
- Shares in DW8 are down 5.88 per cent on the market and are trading at 3.2 cents
DW8 (DW8) tabled operating revenue of $4.6 million in Q3 FY22, down 15 per cent on Q2 but up 497 per cent from the prior corresponding period (pcp).
The company outlined that March is typically the liquor industry’s lowest-revenue quarter, with sales also negatively impacted by COVID and flooding in the eastern states.
Still, DW8’s active suppliers increased 321 per cent from the pcp to 1178, and the company shipped 313,000 cases — down 18 per cent from the prior quarter but up 393 per cent on the pcp.
Gross merchant value (GMV) was up 169 per cent over the prior quarter to $4.3 million. Trade buyers totalled 1646, up 13 per cent on the prior quarter.
In the quarter, DW8 launched an initiative to consolidate four legacy brands and operating entities under the Kaddy brand, with the two core divisions being Kaddy Marketplace and Kaddy Fulfilment.
Kaddy Marketplace is expected to generate cost savings of around $3 million per year, or $750,000 per quarter, and Kaddy Fulfilment is expected to generate further savings.
“Given the difficult trading backdrop, the results and progress that DW8 and the Kaddy team have managed to achieve in the last three months are highly commendable,” CEO Dean Taylor commented.
“Like many businesses, a large percentage of our workforce has been forced to take leave due to Covid. At the same time, we have seen a huge rebound in the number of orders being generated by our customers, with our case shipments in March finishing only just short of the record highs we saw in November.”
DW8 posted net cash outflows of over $2.99 million in the quarter, with the majority going towards staff and product manufacturing and operating costs.
The company also invested $438,310 in its property, plant and equipment.
As of March 31, DW8 had $7.74 million in total available funding, representing 2.59 quarters of use if spending levels remain the same.
Shares in DW8 were down 5.88 per cent on the market and were trading at 3.2 cents at 11:36 am AEST.