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Diamond Estates Wines & Spirits Reports First Quarter Fiscal 2027 <a href="https://bitcomme.com/urbanfund-reports-on-financial-results-for-the-three-and-six-months-ended-june-30-2026/” title=”URBANFUND REPORTS ON FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026″>Financial Results
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Niagara-on-the-Lake, Ontario–(Newsfile Corp. – August 20, 2026) – Diamond Estates Wines & Spirits Inc. (TSXV: DWS) (“Diamond Estates” or “the Company”) today announced its financial results for the three months ended June 30, 2026 (“Q1 2027”).
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Revenue for Q1 2027 was $7.0 million, a decrease of $1.2 million from $8.2 million in Q1 2026. The Winery division experienced a decrease in revenue of $1.0 million, driven by temporary industry wide ordering interruptions as a large Canadian provincial liquor board transitioned to new inventory and ordering systems, combined with the prior-year quarter benefiting from a one-time load-in of volume as retailers replaced U.S. wines removed from store shelves. The Agency division experienced a decrease of $0.2 million, primarily driven by the planned exit of a non-strategic supplier relationship.
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Gross margin¹ as a percentage of revenue grew to 61.1% for Q1 2027 compared to 55.6% in Q1 2026, while gross margin decreased by $0.2 million from $4.5 million in Q1 2026 to $4.3 million in Q1 2027, reflecting lower sales volumes. The gross margin percentage in the Winery division increased from 51.9% in Q1 2026 to 58.5% in Q1 2027.
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Adjusted EBITDA¹ decreased by $0.4 million to $0.9 million in Q1 2027 from $1.3 million in Q1 2026, reflecting lower gross margin of $0.2 million driven by lower sales and higher SG&A expenses of $0.1 million.
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EBITDA¹ increased by $0.2 million to $1.6 million in Q1 2027 from $1.4 million in Q1 2026. The increase is attributable to the year-over-year change in the fair value of the derivative asset/liability of $0.5 million, partially offset by the decrease in gross margin of $0.2 million and the increase in SG&A expenses of $0.1 million.
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Net income increased by $0.2 million to $0.6 million in Q1 2027 from $0.4 million in Q1 2026.
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The unsecured advance from Lassonde of $1,000,000, received in May, 2026, was repaid in July, 2026. In August, 2026, the Company received an additional advance of $750,000 from Lassonde. The loan is unsecured, bears interest at BMO prime plus 2.25%, and is due the earlier of October 31, 2026 or receipt of the next Wine Sector Support Program payment, which was received in September last year.
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In June 2026, the Company entered into a share purchase agreement to dispose of all of the issued and outstanding shares of De Sousa Wines Toronto Inc., whose principal asset is a non-operational pre-1993 winery licence, for total consideration of $250,000. The transaction is subject to customary closing conditions, including regulatory approvals.
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Effective July 31, 2026, the Company agreed to the ninth amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, the only change of which was to extend the maturity date to October 30, 2026.
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In August, 2026, the third and final of the three instalments relating to the purchase of Perigon Beverage Group was paid when the Company issued a further 935,767 common shares valued at $0.19 per share for a total of $180,886 (see note 9).
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In August, 2026, 200,000 options that had been exercisable at $1.80 for each common share and that were going to mature in October 2026, were cancelled.
