Why is the Digital Wine (ASX:DW8) share price tumbling despite strong results?

The Digital Wine (ASX: DW8) share price is down 5% today despite the company's WINEDEPOT business posting strong yearly and monthly gains.

The Digital Wine Ventures Ltd (ASX: DW8) share price is falling today despite the company's WINEDEPOT business posting strong yearly and monthly gains.

The Digital Wine share price is currently trading at 18.5 cents, down 5.13% today.

Digital Wine Ventures is engaged in distributing premium wine and has been a key benefactor of the digital disruption to the global wine industry.

It also undertakes bulk wine production and contract wine processing. The company focuses on the Asian retail wine market. Digital Wine enables its customers in China to purchase wine from around the world through their personal computers, tablets, and mobile phones.

Spilled wine from a glass on the floor.

Image source: Getty Images

Digital Wine results

It's been a busy month for Digital Wine's WINEDEPOT brand. WINEDEPOT shipped 25,311 cases in March, up more than 550% on the same month last year (MoM) and 21.3% on February 2021. 

It processed 12,272 orders during March, up 504% MoM and 29.3% on January 2021. This equated to an average of 2.06 cases shipped per order.

It also signed up another 27 suppliers and appointed James Munn as chief operating officer (COO).

But the company had seen rapid drops in revenue from December until January, so the current results – while strong – are recovering on November's highs, leading to a slightly less exciting results period.

WINEDEPOT's 27 additional suppliers are almost entirely New Zealand and Australian based, with the majority in South Australia.

Digital Wine Venture's new COO

Digital Wine says its new COO, James Munn, is a "highly experienced" supply chain professional with more than two decades of experience in the warehousing and logistics sector.

He replaces former COO Steven Alexander, who has taken a general management role at Lineage Logistics.

Digital Wine Venture share price snapshot

The Digital Wine Ventures share price has been a high performer over the past 12 months, rising 1750%. It also increased 54% this month and 362.5% in 2021 so far.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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