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Winc Inc Shares Remain A Tasty Proposition ($WBEV)

Winc, Inc. (NYSE American: WBEV, $WBEV) shares look extremely undervalued after releasing its Q4 and FY2021 earnings earlier this month. The company showed impressive growth across a number of metrics with a revenue-generating tailwind into 2022.

Total net revenues for Q4 jumped to $18.5 million, a nearly 5% spike over last years comp, and wholesale revenues surged 152% to $3.9 million. For the full-year, total net revenues increased 11.4% to $72.1 million, wholesale revenues jumped 106% to $17 million, and its five core brands grew to a total of 167,175 cases sold, a 47% increase over last year. Heading into 2022, $WBEV also added that its retail account presence surged by 114.8%, selling in 16, 905 locations at the end of last quarter.

Distribution expansion continues to fuel wholesale growth, and at the end of December, $WBEV products are selling from shelves at leading national chains such as Whole Foods, Target, Walmart and Trader Joe’s. Still, WBEV said it’s just getting started, emphasizing its mission to build relationships with major accounts to reach its goal to achieve 50,000 retail accounts within the next several years.

Commentary added bullish sentiment. Geoff McFarlane, Chief Executive Officer, said, “Growth accelerated in the fourth quarter, driven by our wholesale channel, where we continue to experience strong customer response to our innovation and expanding portfolio. In 2021, we deepened our relationship with Whole Foods by growing the number of SKUs available at their locations. We grew active retail accounts by 115% driven by expanded distribution at leading national chains including Whole Foods, Walmart, Target, and Trader Joe’s,” He added, “Wholesale revenue increased 152% in the fourth quarter and was up 107% in full year 2021 as we continued to leverage the power of our unique model to rapidly develop and scale our proprietary brands. Our full year DTC revenue was up 82% on a two-year basis, reflecting strong growth in average order value and the number of transactions, fueled by increased at-home consumption during the pandemic. While tough year-over-year compares have been a headwind to our DTC channel growth rates in recent quarters, we believe we remain well positioned for continued growth.”

Brian Smith, Winc’s President, was equally bullish, saying, “Our core brands collectively grew by 47% in case volume sold compared to 2020, and we believe we have strong line of sight on future gains based on our modest all commodity volume, expanding distribution and the performance of our newest offerings, including Pizzolato, Les Hauts De Lagarde, and Cherries and Rainbows. 2021 was also an important inflection for our organic wine business as we increased our portfolio offerings to more than 20% organic products, leveraging the Natural Merchants assets we acquired in May 2021, and expanded distribution to major national retailers in mass and grocery channels. We believe we are well positioned to be a leader in the organic category as our platform and brand portfolio index high with millennial consumers’ growing demand for more sustainable options that are healthier, naturally produced and chemical-free.”

Supply chain and logistics pressures, as well as expenses from being a newly listed company hit the bottom line. However, $WBEV noted it expects to clear that turbulence this year as its operations and markets normalize after a very challenging global commerce. One time costs, especially those related to its public listing, won’t be part of its 2022 reports, allowing WBEV to capitalize on maximizing top line and account growth in the new year.

Complete earnings over can be found HERE.

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