Diamond Estates Wines & Spirits Inc. (TSX-Venture:DWS) galloped in stock price on revealing its fourth-quarter financial numbers.
The Niagara-on-the-Lake-based company announced Q4 2019 revenue was $4.5 million compared with $5.4 million in the three-month period ended March 31, 2018, reflecting the impact of previously disclosed supplier losses in the agency division.
Gross margin was $1.8 million, or 39.6% of revenue, compared to $2.3 million, or 42.2% of revenue, in Q4 2018. EBITDA was ($1.4) million, compared to ($0.8) million in Q4 2018, and the net loss was $2.2 million, compared with $1.4 million in Q4 2018.
According to CEO Murray Souter, "Our financial results in Fiscal 2019 were disappointing, due largely to temporary challenges in the export market and the loss of major suppliers in our agency division, as previously disclosed."
"However, we have achieved our long-term goal of establishing the leading competitive position in the Ontario grocery channel. We believe that grocery will ultimately be the preferred sales channel for Ontario customers, so establishing this position now is critical for our long-term success."
Shares in DWS hiked two cents, or 12.5%, late Monday morning, to 18 cents, on volume topping 646,000.
