Canada's Diamond Estates Q3 revenue rises 28% on winery division growth

Overview

• Canada wine producer's Q3 2026 revenue rose to C$8.2 mln, driven by Winery division growth

• Net income turned to a loss of C$0.1 mln from C$0.5 mln profit in Q3 2025

• Company resolved regulatory compliance issue with nominal cost, enhancing internal controls

Outlook

• Company sees positive growth prospects for domestic and import beverage alcohol markets in Canada

• Diamond Estates expanding export focus beyond China to reduce reliance on single marketplace

• Company investing in winemaking, marketing, and infrastructure to support efficient growth

Result Drivers

• WINERY DIVISION GROWTH - Revenue increase driven by growth in grocery, convenience, and big-box channels, as well as enhancements to the VQA Support Program

• GROSS MARGIN IMPROVEMENT - Gross margin increased due to improved Winery division performance and government support programs

• NET INCOME DECLINE - Net income turned to a loss due to non-operational items impacting EBITDA, including compliance-related expenditures

Company press release: ID:nNFC4PNMQj

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the distillers & wineries peer group is "buy."

• Wall Street's median 12-month price target for Diamond Estates Wines & Spirit Inc is C$0.30, about 53.8% above its February 25 closing price of C$0.20

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