Vintage Wine Estates reports net revenue fell $4.8 million. The decline wasn't unexpected, since the company has taken several actions to simplify the business. The company posted a loss from operations of $9.9 million, which included $4 million in restructuring costs.
The restructuring resulted in a 4% reduction of the workforce that is expected to provide total annualized savings of approximately $6 million. These expenses were partially offset by the $0.8 million gain from the $1.3 million sale of the Tamarack building in July.
Net loss attributable to VWE common stockholders was $15.1 million, compared with income of $1.5 million a year earlier.
The company reported its fiscal first quarter loss just one week after its new chief executive, Seth Kaufman took office. Kaufman said "the business is beginning to stabilize, (but) we still have much work to do." This includes improving cash generation, further simplifying the business, strengthening brand development and marketing, and increasing points of distribution."
He said the company was withdrawing its previous guidance for 2024 while he develops a long-term strategy. He said he has "three critical priorities over my first 100 days. First and foremost, I will provide the team the support and resources necessary to deliver our Five-Point Plan. Simultaneously, I will be doing a deep dive across the business, our teams and our stakeholders to develop an in-depth understanding in-support of both immediate-term and longer-term needs. This effort will underpin my third priority to begin creating the comprehensive vision, strategy and execution plans necessary to secure a marketplace advantage and create enhanced value for consumers and shareholders."
He said VWE has a solid foundation and a talented and experienced team. "I have confidence in our ability to deliver, while we re-imagine our potential and uncover our future opportunity during this transition year."