The Digital Wine Ventures Ltd (ASX: DW8) share price is having a rough day at trading. At the time of writing, shares in the online wine company are trading for 12 cents each – down 12.0%.
The precipitous fall comes after the company provided an update on its trading during April.
Let's take a closer look at the announcement and what it means for the Digital Wine share price.
Digital Wine share price crashes on lower sales
In a statement to the ASX, Digital Wines says it sold just over 23,000 cases of wine in April. The company was at pains to point out that this figure is up 580% on the same time last year. However, sales are down 9.1% over March. Back in March, sales increased 540% month on month (MoM). However, orders processed in April are up 350% MoM compared to 504% MoM in March. From March to April, orders processed also fell 22.5% to around 9,500 orders.
Digital Wine largely attributed the fall in sales and orders processed in April to "the extended vintage preoccupying many winemakers."
Investors did not seem to be buying this, however, judging by the Digital Wine share price.
Other announcements
Along with the sales figure, Digital Wine also had another few announcements in today's update.
Firstly, 19 additional suppliers have signed with the company since its last update in March. This includes 14 producers and 5 importers/wholesalers.
Digital Wine also reports it has "soft launched" its direct-to-trade marketplace on its Wine Depot platform. First orders were delivered in Sydney and Melbourne last week. Over the next few weeks, the company will progressively roll out access to the trading floor in Sydney before making the platform available in Melbourne.
Finally, the company received a liquor licence allowing Wine Depot to sell alcohol to the general public. With the licence secured, Digital Wine will launch an invitation-only membership program called Insider Trading. Shareholders, staff, and suppliers will be able to purchase wine directly from the business at discounted rates.
Digital Wine share price snapshot
Over the past 12 months, the Digital Wine share price has increased an astonishing 1,733.33%. In mid-April, shares reached an all-time high of 21 cents each.
Digital Wine Ventures has a market capitalisation of $176.3 million.
