Duckhorn Sales Rise By Nearly 20% In First Quarter, EBITDA Up Nearly 40%
December 9, 2024For its first fiscal quarter of 2025, Duckhorn reported net sales of $122.9 million, a 19.9% increase over Q1 2024. The company attributed that growth to Sonoma-Cutrer, noting that when the brand is excluded, sales were down 8.2%. That decline was attributed to inventory shifting in certain markets where the company began working with new distributors. Adjusted EBITDA for the quarter was $48.6 million, a nearly 40% increase over last year. According to Impact Databank, Duckhorn is the 20th-largest wine marketer in the U.S. by volume, up 5.5% to 2.6 million cases last year, with 2024 sales of roughly $400 million.
In terms of profits, Sonoma-Cutrer boosted the rest of the company’s portfolio, which sagged. Gross profit overall was up 14.2% to $61.5 million. But again, when Sonoma-Cutrer is excluded, gross profit declined by 10.6%. The addition of Sonoma-Cutrer pushed Duckhorn’s volume up by nearly 25% for the quarter. “We are pleased to begin fiscal 2025 with a strong financial performance. Our growth continues to outpace the industry as our teams remain focused on advancing our strategic initiatives,” said Deirdre Mahlan, president, CEO and chairperson. “We believe our distinctive brands, operational excellence and market-leading performance leave us well positioned to deliver long-term growth and profitability.”
Duckhorn’s Q1 results follow the October announcement that Los Angeles-based private equity firm Butterfly will acquire the company for $1.95 billion. Publicly listed Duckhorn will become a private company after the closing of that transaction, expected this winter. The deal was unanimously approved by the Duckhorn board. It included a customary 45-day “go-shop” period that expired November 20, during which Duckhorn was able to solicit, consider, and negotiate alternative acquisition proposals from third parties.
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