Vintage Wine Estates Inc (NASDAQ:VWE) stock plunges 43.17% (As on September 14, 11:10:36 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the fourth quarter of FY 22. Gross profit was down $11.1 million to $38 thousand reflecting adjustments identified through processes implemented to improve internal controls. Specifically, the Company recorded $19.1 million in non-cash inventory adjustments identified through efforts to improve and strengthen inventory management, processes and reporting.  Also impacting gross profit were inefficiencies created by supply chain constraints and inflation. These impacts were partially offset by gross profit contributions of the acquisitions and improved pricing in DTC. Net loss available to VWE common shareholders was $14.7 million, compared with net loss of $6.1 million in the prior-year period.

VWE in the fourth quarter of FY 22 has reported the adjusted earnings per share of 17 cents, beating the analysts’ estimates for the adjusted earnings per share of 9 cents. The company had reported the adjusted revenue growth of 32 percent to $75.5 million in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $74.23 million. This is driven by higher volume and increased prices. Acquisitions contributed $13.3 million in net revenue for the quarter. DTC revenue grew $5.1 million, or 29%, to $23.1 million driven by 10% organic growth and acquired revenue of $3.4 million. Organic growth was the result of record tasting room traffic and wine club memberships combined with more events as travel and entertainment became a priority for consumers with pandemic concerns receding. B2B revenue increased $10.8 million, or 55%, to $30.6 million driven by bulk distilled alcohol sales and $4.2 million of acquired revenue. Private label projects were modestly lower reflecting lack of availability of inventory for certain programs. Wholesale revenue increased $4.1 million, or 23%, to $21.6 million due to acquired revenue of $5.7 million and the benefit of improved pricing, which was partially offset by the change in programming schedules and tight supply related to a specific varietal. VWE total depletions were (11.6)% over the prior-year period, similar to the Company’s priority brands, which represented approximately 57% of total depletion volume. On premise depletions for all brands were up 4.1%.

Vintage Wine Estates, Inc. expects FY2023 revenue to be in the range of $300-310 million, versus the consensus of $330.4 million. FY23 Adjusted EBITDA is expected to be in the range of $55 million to $65 million.