By Alan Hatfield
St. Helena, CA-based winemaker The Duckhorn Portfolio, Inc. (NYSE: NAPA) yesterday raised its 2022 fiscal year guidance, citing its demonstrated brand power, differentiated strategic plan and highly flexible supply chain.
With a portfolio of 10 high-quality brands, Duckhorn is a “one-stop luxury wine shop” and the largest pure-play luxury wine company in the U.S.
A quarter of double-digit growth saw net sales increase 18% to $98.7 million for the three months ending Jan. 31, versus the prior year period and gross profit increase by 18.5% to $49.5 million, driven by demand for luxury wines. Duckhorn was the fastest growing wine supplier among the top 15 suppliers in the U.S.
Net income was at $17.9 million, or $0.16 per diluted share, compared to $22 million, or $0.22 per diluted share in the prior year period. Adjusted net income grew to $19.5 million, or $0.17 per diluted share, from $16.8 million, or $0.17 per diluted share in the same period.
Adjusted EBITDA grew 6.6% to $34.3 million, although when factoring in public company costs in the current period that didn’t exist in the prior year period when Duckhorn was still privately traded, adjusted EBITDA grew 11.5% versus the prior year period.
“We are pleased with our impressive second quarter results as we delivered double-digit organic sales and volume growth and continued to outperform the high-growth luxury wine industry,” Alex Ryan, President, Chief Executive Officer and Chairman, said in a statement.
Duckhorn’s Decoy and Duckhorn Vineyards brands led growth for the quarter and outpaced growth of its other winery brands. Decoy was the fastest-growing brand among the top 15 U.S. wine brands across price and the number two brand within the segment of wines over $15 per bottle.