$1B GVM x 12% fees = $120M revenue + $100M logistics revenue =...

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steve10

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13/10/21

15:41

Post #: 56771435
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Originally posted by Tradingdreamz88: ↑

From today's broker presentation- Featuring Dean, Mike & Rich - All is my notes and not advice-

First point that was clearly made was our first target is a combined $1B GVM

Both companies compliment each other
DW8 strategy- From the ground up approach of building out a logistics network --> A Marketplace

Kaddy strategy- Directly into marketplace

By incorporating our current clients into the Kaddy market place, we are reducing our time from startup to on par with Kaddy by 2.5 years -

Mike abbot - Who will join our board
* Was Australia's second Uber employee, vast experience in scaling new Tech businesses with his roles at uber/Uber eats

Kaddy current have a team of 20 employees, 7 of which are developers & 50% of which are Ex Uber employees

Both teams being Sydney based.

Kaddies main suppliers are Craft, spirits, cider & seltzer producers. Which is important when overlapped verse Wine Depots current suppliers- 6 in total overlap out of those 6, they all provided different products, meaning there will be close ZERO customer overlapping - 'erosion of clients when fully integrated'

This FY ( Wine Depot ) we are on track with current trends to reach $20m FY

A issue Kaddy have had is logistical assurance, which is why WineDepot became a perfect integration.

WineDepot having 7 depots Aust wide, not including our National Depot will be the one of the foundations to upscale Kaddy & why we will succeed together.

It'll take 9months to fully integrate both platforms into one, but synergies will be realised within weeks.

Transactional Values Aust
$17B - wholesale
$3B - bars/clubs

First goal is to gain a 5% share

Logistical Values Aust
190m cases

First goal 5% share = 9.5m

Important to understand also the opportunity in advertising revenue to be gained from the platform/sites/social media- Not to dissimilar to Carsales, In which majority of their revenue come via Adverts.

Revenue goals
$1b marketplace
$100m logistics

Industry from both sides have expressed interest in current raise. Which is always a great feeling.

Both marketplaces will continue to operate, Kaddy being B2B, WineDepot being B2C including 'insider trading' but I would assume customers bases will be shadows via both.

Logistics division on par to become profitable this FY, which will feed into the expansion of the marketplaces- Important to note, that currently market is expected to continue its expansion and we will be investing heavily into such.

Overall, very positive moving forward for both businesses in which compliment each other.

What is hard to beat is 'Choice, convenience & value' and that's what this integration brings.

As above all my personal note.

Expand

$1B GVM x 12% fees = $120M revenue + $100M logistics revenue = $220M pa revenue target.

Current combined run rate is about $42M pa so target is growth of 423.8%.

The way DT operates this should happen in a year or so by acquiring a large logistics company such as BAM.

DW8 Price at posting: 6.6¢ Sentiment: Buy Disclosure: Held
13 Upvote

0 Great analysis

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