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Duckhorn Portfolio names new CEO and completes vineyard acquisition

EditorNatashya Angelica
Published 01/05/2024, 19:48
NAPA
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ST. HELENA, Calif. - The Duckhorn Portfolio, Inc. (NYSE: NAPA), a prominent luxury wine company in North America, announced the appointment of Deirdre Mahlan as its permanent President, Chief Executive Officer, and Chairperson. Mahlan, who has been a board member since March 2021 and served as interim CEO for the past six months, brings over three decades of experience in the alcohol and beverage industry.

Previously, Mahlan held various leadership roles at Diageo (LON:DGE), including President of Diageo North America and CFO of Diageo plc. She is also a board member of Kimberly-Clark Corporation (NYSE:KMB) and Haleon (LON:HLN) plc. "Her industry track record and performance both on our Board and as interim CEO make it clear that Deirdre is the ideal leader to spearhead the Company's next phase of growth," said Michelle Gloekler, lead independent director.

Today, The Duckhorn Portfolio also completed its acquisition of Sonoma-Cutrer Vineyards from Brown-Forman Corporation (NYSE: BF.B), aiming to enhance its position in the Chardonnay category and expecting the acquisition to be accretive in fiscal 2025. The company is confident that synergies will surpass the previously estimated $5 million annually.

In addition to these strategic moves, The Duckhorn Portfolio is conducting a comprehensive evaluation of its distribution network to drive increased focus and investment from distributor partners.

The company also released preliminary third-quarter net sales for fiscal 2024, expected to be between $91 million and $93 million, reflecting a continuing softness in the wine market. Despite this, the company remains focused on outpacing industry growth, with Adjusted EBITDA margins anticipated to align with fiscal year-to-date trends. A full financial outlook for fiscal 2024 will be provided on the third-quarter earnings call scheduled for Thursday, June 6, 2024.

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This news is based on a press release statement and includes forward-looking statements about the company's financial results and strategies. The preliminary financial information is subject to finalization and may change upon review.

No independent registered public accounting firm has reviewed the preliminary net sales information, which is not a substitute for full quarterly financial statements prepared in accordance with applicable accounting standards.

InvestingPro Insights

The Duckhorn Portfolio's appointment of Deirdre Mahlan as President and CEO comes at a pivotal time for the company, as it looks to solidify its luxury wine offerings and expand its market presence. With the acquisition of Sonoma-Cutrer Vineyards and the strategic evaluation of its distribution network, NAPA is setting the stage for growth despite the softness in the wine market indicated by the preliminary third-quarter net sales.

InvestingPro data shows that The Duckhorn Portfolio has a market capitalization of $983.29 million and is trading at a P/E ratio of 14.79, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 14.69.

This positions the company as trading at a low earnings multiple, which could be attractive for investors looking for value. Moreover, the company's gross profit margin stands at an impressive 54.9%, reflecting efficient operations and a strong pricing strategy.

InvestingPro Tips highlight that The Duckhorn Portfolio (NYSE: NAPA) has been recognized for its impressive gross profit margins. Moreover, analysts have predicted that the company will be profitable this year, with the company already profitable over the last twelve months.

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Still, it is important to note that six analysts have revised their earnings downwards for the upcoming period, which may be a consideration for investors. For more in-depth analysis and additional tips on NAPA, visit InvestingPro. There are currently 7 additional InvestingPro Tips available, which can provide a comprehensive view of the company's financial health and future prospects.

For readers interested in gaining further insights and access to exclusive analytics, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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