- DW8 (DW8), formerly known as Digital Wine Ventures, has reported a 78 per cent climb in revenue
- Operating revenue grew by 78 per cent to $5.4 million from the previous quarter, which only includes three weeks contribution from the recently acquired business, Kaddy
- At the end of the quarter, the company had $8.4 million, which it estimates will last about 2.5 quarters
- It noted it will receive a cash inflow of $4.6 million next month from the sale and long-term leaseback of its National Distribution Centre
- Shares are trading 2.13 per cent higher today at 4.8 cents each
DW8 (DW8), formerly known as Digital Wine Ventures, has reported a 78 per cent climb in revenue.
The company recorded $5.4 million in operating revenue, representing a 78 per cent increase on the previous quarter. This includes only three weeks of revenue contribution from B2B liquor business Kaddy, which it acquired in early December.
DW8 raised a total of $13.8 million over the period, which was largely used in the acquisition of Kaddy and to expand capital for the Kaddy marketplace.
DW8 reported cash outflows of about $3.6 million in its quarterly report as it plans for expansion.
The company is currently integrating Kaddy into its CONNECT platform, with the view of it becoming the company’s primary direct-to-trade marketplace offering by Q4 FY2022.
During the quarter, the company received $7.2 million in receipts from customers.
Its operating expenses came in at $10.8 million.
Cases shipped were up 79 per cent to 382,000, which does not include any contribution from Kaddy.
Active suppliers grew to 1,093, a 74 per cent increase from the previous period.
Looking ahead, the company is intending to expand its INSIDER program, which provides wine and other beverages at competitive prices, educational dinners or tastings, and a news feed covering the industry. It is expected to be expanded later this year, once Kaddy is fully integrated into the platform.
DW8 is expecting to launch its second generation of CONNECT platform in the June quarter. It contains features that will pave the way for a premium subscription to be introduced, commercialising the product.
At the end of the quarter, the company had $8.4 million, which it estimates will last about 2.5 quarters.
However, it noted it will receive a cash inflow of $4.6 million next month from the sale and long-term leaseback of its National Distribution Centre.
Chief Executive Officer Dean Taylor said he believes the company is in a strong position.
“Beyond the acquisitions, organic growth across both trading and fulfilment platforms remains strong,” he said.
“The expected onboarding of some larger suppliers over the coming months should help offset the seasonally softer trading conditions that are typically experienced by the beverage industry in the March quarter.
“We expect the operational and fiscal impacts of COVID-19 on the platform, both positive and negative, to remain consistent over the next quarter.”
Shares are trading 2.13 per cent higher today at 4.8 cents each at 12.56 pm AEDT.