Mon, Oct 7, 9:03 PM (86 days ago)
The Duckhorn Portfolio, Inc. (NAPA) reported a slight increase in net sales to $405,481 in FY 2024, up 0.6% from $402,996 in FY 2023. Gross profit remained stable at $214,926, while net income attributable to the company decreased to $56,013 from $69,298. The company’s selling, general, and administrative expenses rose by 9.5% to $120,083, largely due to transaction and integration costs related to the acquisition of Sonoma-Cutrer, which added a significant luxury Chardonnay brand to its portfolio. The acquisition, finalized on April 30, 2024, involved issuing 31.5 million shares valued at approximately $267.1 million and $50 million in cash. The company also acquired Geyserville winery for $54.6 million, enhancing its production capacity. Key risks include reliance on distributors, fluctuating consumer demand, and potential disruptions from natural disasters. The company maintains a strong liquidity position with $10.9 million in cash and $324 million in undrawn credit capacity. The ongoing merger with Butterfly Equity is anticipated to close in Q1 FY 2025, with shareholders set to receive $11.10 per share in cash. Overall, while facing challenges, Duckhorn remains strategically positioned in the luxury wine market.