The Digital Wine Ventures Ltd (ASX: DW8) share price surged more than 10% this morning after the company released a positive company update.
What are the details?
In the update, Digital Wine said its WINEDEPOT business shipped a record number of cases in August, up 28% on the previous record in July. Digital Wine reported that WINEDEPOT had processed a total of 4,151 orders in August, shipping 8,488 cases for the month.
Despite the increase in customers, the August growth came from existing customers ramping up their order volumes, the company said.
In addition, Digital Wine said that WINEDEPOT had added another 17 brands to its portfolio and signed its first small distributor. This was Turallao Wine Distribution, which represents a number of additional wine brands.
How has the Digital Wine share price performed?
Digital Wine is an online beverage supplier that provides end-to-end supply chain solutions for wine producers, distributors, importers and retailers. The company's WINEDEPOT business operates as a cloud-based software-as-a-service. The WINEDEPOT technology platform removes inefficiency's in supply chains and empowers direct-to-market sales.
Earlier this week, Digital Wine released its financial report for FY20. The company's report was highlighted by revenue of $566,141 for the full-year, a 139% increase on its performance in 2019.
Digital Wine primarily generates its revenue through trading fees and subscription fees for its WINEDEPOT platform. For the same period, Digital Wine Ventures posted a full-year loss of $2 million. However, the company attributed the loss to costs involved with the launch of WINEDEPOT and closure of operations in China.
At the time of writing, the Digital Wine share price has been sold down and is trading more than 5.2% higher for the day. Shares in the company were trading more than 10% higher earlier in the day after hitting an intra-day high of 4.2 cents. The Digital Wine share price has performed strongly in 2020, surging more than 600% since the start of June.
