Canada's Diamond Estates Q1 revenue falls on lower winery shipments

Diamond Estates Wines & Spirit

20/08/2026 22:40

Overview
Canada wine and spirits producer's Q1 2027 revenue fell 15% yr/yr on lower winery shipments
Gross margin rose to 61.1% of revenue from 55.6% a year earlier
Adjusted EBITDA declined yr/yr but company remained profitable

Outlook
Company says Ontario retail expansion and buy-local movement expected to support Winery division
Diamond Estates expects positive growth prospects for Canadian beverage alcohol markets
Company says it is expanding export focus beyond China to reduce reliance on one market

Result Drivers
LIQUOR BOARD TRANSITION - Co said Winery division revenue fell due to temporary ordering interruptions as a major provincial liquor board transitioned to new inventory and ordering systems
ONE-TIME LOAD-IN - Prior-year quarter benefited from a one-time load-in as retailers replaced U.S. wines removed from store shelves
AGENCY DIVISION EXIT - Agency division revenue fell due to planned exit of a non-strategic supplier relationship

Company press release: ID:nNFC5mlSxC

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
C$7 mln
C$8.9 mln (1 Analyst)
Q1 Net Income
 
C$600,000
 
Q1 Adjusted EBITDA
 
C$900,000
 
Q1 Gross Margin
 
61.1%
 
Q1 EBITDA
 
C$1.6 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the distillers & wineries peer group is "buy."
Wall Street's median 12-month price target for Diamond Estates Wines & Spirit Inc is C$0.30, about 81.8% above its August 19 closing price of C$0.17
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)