Winc. Inc. said its net revenue in the first quarter rose 5.7% to $18.5 million as wholesale revenue increased 75.1% to $5 million but DTC revenue eased 6.7% to $13.3 million. The first reported a net loss for the quarter of $4.2 million compared to year-earlier net income of $600,000.
“We are pleased with our first quarter results and the progress we made on key initiatives to drive growth and enhance profitability. Wholesale revenues were up 75.1% and fueled our top-line growth, attributable in part to a 62.2% increase in the number of retail accounts versus the prior year period,” said Geoff McFarlane, Chief Executive Officer.
“Distribution gains continued to reflect the breadth of our expansion with leading national chains, including Walmart and Target. In our DTC business, ongoing initiatives aimed at optimizing customer activity drove average order value up 11.7% versus the prior-year period while marketing spend declined nearly 36%. The 6.7% decline in DTC revenues for the quarter was unsurprising as we cycled a 96.2% increase a year earlier and customer demand returned to pre-COVID levels; on a two-year basis, DTC revenues were up 83.0%. We delivered a 47.6% sequential improvement in Adjusted EBITDA* versus the fourth quarter of 2021, a significant milestone on our path to profitability as the business continues to scale,” McFarlane added.
Brian Smith, Winc’s President, said the strength of Winc’s core brand portfolio continued to be a major growth driver. “In the first quarter, case volume was up 42.6% in core brands versus a year ago, reflecting strong underlying demand coupled with expanding wholesale distribution. Our innovation pipeline remains robust and we continue to be very pleased with the growth trajectory of our newest brands, including a Summer Water orange wine extension, as well as the significant traction we are gaining in the organic wine category. We believe the proven power of our unique omni-channel platform to efficiently develop new products and brands, and rapidly expand distribution, is a competitive advantage that underpins our confidence in driving continued growth.”