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The Duckhorn Portfolio Inc. (NAPA) has submitted its 10-Q filing for the quarterly period ended October 31, 2024.
Net sales for the quarter increased by 19.9% to $122.9 million compared to $102.5 million for the same period last year. This increase was primarily driven by volume growth due to the acquisition of Sonoma-Cutrer.
Gross profit for the quarter was $61.5 million, representing a 14.2% increase from $53.9 million in the previous year. The gross profit margin was 50.0%, down from 52.5% last year, affected by higher discounts and brand mix.
Selling, general, and administrative expenses increased by 33.8% to $40.8 million, primarily due to higher transaction costs related to the Merger Agreement and integration costs for the Sonoma-Cutrer acquisition.
Net income attributable to The Duckhorn Portfolio, Inc. was $11.2 million, down from $15.5 million in the previous year, influenced by increased interest expenses and unfavorable fair value adjustments on interest rate swaps.
The company reported an adjusted EBITDA of $48.6 million, up from $34.7 million in the previous year, driven by strong gross profit margins and operational efficiencies.
The Duckhorn Portfolio announced a proposed merger with Marlee Buyer, Inc., a subsidiary of Butterfly Equity LP, which is expected to close this winter, subject to customary closing conditions.
The company completed the acquisition of Sonoma-Cutrer on April 30, 2024, expanding its luxury wine portfolio and vineyard holdings.
As of October 31, 2024, The Duckhorn Portfolio had $5.4 million in cash and $342.0 million in undrawn capacity on its revolving line of credit.
The company remains focused on leveraging its sales and marketing strengths to increase brand awareness and expand its distribution network.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the The Duckhorn Portfolio Inc. quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.