British stone. Helena, California – Duckhorn Portfolio, Inc. (NYSE: NAPA), a leading luxury wine company in North America, announced the appointment of Deirdre Mahlan as its permanent president, CEO and chairman of the board. Mahlan, who has been a board member since March 2021 and served as interim CEO for the past six months, has more than three decades of experience in the alcohol and beverage industry.
Previously, Mahlan held various leadership roles at: Diageo (LON:), including President of Diageo North America and Chief Financial Officer of Diageo plc. She is also a member of the Board of Directors of Kimberly-Clark Corporation (NYSE: ) and Haleon plc. Michelle Gloekler, lead independent director, said: “Her industry record and performance on the Board and as interim CEO make it clear that Deirdre is the ideal leader to lead the company’s next phase of growth.
Today, Duckhorn Portfolio also completed the acquisition of Sonoma-Cutrer Vineyards from Brown-Forman Corporation (NYSE: BF.B) in an effort to strengthen its position in the Chardonnay category and expects the acquisition to materialize in fiscal 2025 value added.
In addition to these strategic initiatives, Duckhorn Portfolio is conducting a comprehensive review of its distribution network to drive increased focus and investment from distribution partners.
The company also reported preliminary net sales for the third quarter of fiscal 2024, which are expected to be in the range of $91 million to $93 million, reflecting continued weakness in the wine market. Still, the company remains focused on outperforming industry growth, and adjusted EBITDA margins are expected to be in line with trends so far this fiscal year. A complete financial outlook for fiscal 2024 will be provided during the third quarter earnings conference call scheduled for Thursday, June 6, 2024.
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This news is based on a press release and contains forward-looking statements regarding the company’s financial performance and strategies. Preliminary financial information is subject to finalization and may change upon review.
No independent registered public accounting firm has reviewed preliminary net sales information and this information is not a substitute for complete quarterly financial statements prepared in accordance with applicable accounting principles.
Investment Professional Insights
Duckhorn Portfolio’s appointment of Deirdre Mahlan as president and CEO comes at a critical time for the company as it looks to solidify its luxury wine offerings and expand its market share. Although preliminary third-quarter net sales indicate a soft wine market, NAPA is laying the foundation for growth through its strategic review of the acquisition of Sonoma-Cutler Vineyards and its distribution network.
According to InvestingPro data, The Duckhorn Portfolio has a market capitalization of $983.29 million, a current price-to-earnings ratio of 14.79, and an adjusted price-to-earnings ratio of 14.69 for the trailing 12 months to the second quarter of 2024.
This gives the company a low price-to-earnings ratio, which may be attractive to value-seeking investors. Additionally, the company’s gross margin reached an impressive 54.9%, reflecting efficient operations and strong pricing strategy.
InvestingPro Tips highlights that The Duckhorn Portfolio (NYSE: NAPA ) is recognized for its impressive gross margin. Furthermore, analysts predict that the company will be profitable this year, having already done so in the trailing twelve months.
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However, it’s worth noting that six analysts have lowered earnings for the period ahead, which may be a consideration for investors. For a more in-depth analysis of NAPA and other tips, visit InvestingPro. There are currently 7 additional InvestingPro Tips available to provide a comprehensive understanding of a company’s financial health and future prospects.
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