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VINE NYSE AM· Fresh Vine Wine Inc
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VINE NYSE AM· Fresh Vine Wine Inc
Earnings report Q3 2023

Fresh Vine Wine Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

Fresh Vine Wine reported a total net revenue of $847.96 million for the three months ended September 30, 2023, compared to $535.58 million in the same period last year. This represents a significant increase of 58.5% year-over-year. The company's wholesale revenue amounted to $744.53 million, showing a substantial growth from $330.87 million in the previous year's quarter. Direct to consumer revenue also saw positive growth, reaching $103.43 million, compared to $204.71 million in the same period last year. It is worth noting that there was no related party service revenue in the latest quarter.

Strengths

Fresh Vine Wine demonstrated strong revenue growth in the latest quarter, with a notable increase in both wholesale and direct to consumer sales. The company's ability to capture market share and attract customers through its competitively priced premium wine brand, which caters to consumers' healthy and active lifestyles, has contributed to this positive performance. The management highlighted the benefits of their low-cal, low-sugar, low-carb wines, as well as their gluten-free and keto and vegan-friendly options, which have resonated well with consumers. This product differentiation has likely played a role in driving revenue growth.

Challenges

Despite the overall revenue growth, Fresh Vine Wine reported a gross loss of $41.89 million for the latest quarter. This is an improvement from the gross loss of $65.96 million in the same period last year, but it still indicates a challenge in managing costs and achieving profitability. The company's cost of revenues amounted to $889.84 million, which exceeded the net revenue. Additionally, selling, general, and administrative expenses remained high at $1.14 billion, contributing to the operating loss of $2.13 billion. The management should focus on optimizing costs and improving operational efficiency to address these challenges.

Noteworthy

Fresh Vine Wine's revenue growth in the latest quarter is particularly impressive considering the challenging operating environment for a California-based wine producer. The company has successfully navigated potential supply chain disruptions caused by droughts or fires through effective diversification. This resilience in managing external risks is noteworthy and demonstrates the company's proactive approach to mitigating potential challenges.

Summary

Fresh Vine Wine delivered a strong performance in terms of revenue growth in the latest quarter. The company's total net revenue increased by 58.5% year-over-year, driven by significant growth in both wholesale and direct to consumer sales. Fresh Vine Wine's ability to attract customers with its competitively priced premium wine brand, tailored to consumers' healthy and active lifestyles, has been a key strength. However, the company continues to face challenges in achieving profitability, as indicated by the gross loss and high operating expenses. Nonetheless, Fresh Vine Wine's resilience in managing external risks, such as supply chain disruptions, is commendable. Moving forward, the company should focus on optimizing costs and improving operational efficiency to enhance profitability.

Source documents

Form 10-Q  filed on Nov 14, 2023
7 pages scanned

Reference data

Company financials Q3 revenue 848k
Analyst estimates Q3 EPS missed by NaN%
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