Santa Rosa Winery Reports Increase in Net Profit Since IPO
Vintage Wine Estates on Tuesday released its first results since going public this spring, reporting net income of $ 4.1 million for fiscal 2021, a significant improvement from the loss of $ 14.7 million from the previous year.
The Santa Rosa-based wine company also announced the acquisition of the Vinesse wine subscription service, which generated $ 20 million in revenue for owner Larry Dutra. Vintage Wine Estates will pay Dutra $ 14 million in cash with a bonus of $ 2.5 million based on future performance.
“Currently, Vinesse subcontracts almost all of its operations. We believe that we can create significant cost synergies by bringing winemaking and distribution in-house and by marketing VWE’s brand portfolio through their channels, ”said Pat Roney, CEO of the company.
The company said its 2021 net revenue reached $ 220.7 million, an increase of 16.2% from the prior year.
Roney noted in a statement that since becoming a public company, Vintage Wine Estates “has temporarily strained our resources, we are growing our team, outsourcing where needed and implementing processes to improve our capabilities. “.
The company has $ 234 million in reserve for potential acquisitions and is expected to be able to make three purchases in fiscal 2022, Roney said in a statement.