Willamette Valley Vineyards Posts results for Q3 2023

SALEM, Ore., Nov. 14, 2023 /PRNewswire/ — Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the “Company”), a leading Oregon producer of Pinot Noir, generated a loss per common share after preferred dividends of $0.17 and  $0.29 for the three months ended September 30, 2023 and 2022 respectively, a decrease of $0.12, for the three month period ended September 30, 2023 over the same three month period in the prior year. 

Sales revenue for the three months ended September 30, 2023 and 2022 were $9,348,066 and $7,602,878, respectively, an increase of $1,745,188, or 23.0%, in the current year period over the prior year period. This increase was caused by an increase in sales through distributors of $412,728 and an increase in direct sales of $1,332,460 in the current year three-month period over the prior year period. The increase in revenue from sales through distributors was primarily attributed to more availability of new vintage wines compared to the prior year. The increase in direct sales to consumers was primarily the result of retail sales in new tasting rooms in 2023.

Gross profit for the three months ended September 30, 2023 and 2022 was $5,684,578 and $3,894,183, respectively, an increase of $1,790,395, or 46.0%, in the current year three-month period over the same prior year period.

Selling, general and administrative expenses for the three months ended September 30, 2023 and 2022 was $5,967,346 and $5,120,218 respectively, an increase of $847,128 or 16.5%, in the current quarter over the same quarter in the prior year. This increase was primarily the result of an increase in selling and marketing expenses of $577,384, or 15.3% and an increase in general and administrative expenses of $269,744, or 20.0% in the current quarter compared to the same quarter in the prior year.

Net loss for the three months ended September 30, 2023 and 2022 was $326,982 and $949,821, respectively, a decrease of $622,839, or 65.6%, in the third quarter of 2023 over the same quarter in the prior year. 

Jim Bernau, Founder and CEO of the winery said “The 3rd Quarter results show we have achieved our Board’s long term strategic goal of 50% of revenues coming directly from wine consumers.  Retail sales in this Quarter grew 39% from the prior year’s.  The Gross Margin from these retail sales grew to 69%.  Gross Profit from retail sales grew 48% from last year’s 3rd quarter.”

“I believe our new winery and retail locations are helping us reach thousands of new customers, while our successful preferred stock offerings have resulted in a significant number of wine enthusiast stockholders who previously had not made a recorded purchase in any of our tasting rooms or on-line.” 

“Our wholesales sales in this 3rd Quarter grew 10% in this challenging, down wine market.”

Bernau credited returning to the company’s core values of collaboration, transparency, vulnerability and authenticity were the key to the Company’s success, “We trimmed management with the remaining staff working in teams, substantially improving results.”

For a complete discussion of the Company’s financial condition and operating results for the second quarter, see our Form 10-Q for the three months ended September 30, 2023, as filed with the United States Securities and Exchange Commission on EDGAR. 

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon.  The Company’s common stock is traded on NASDAQ (WVVI).

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, referred to as the “Securities Act”, and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the “Exchange Act”. These forward-looking statements involve risks and uncertainties that are based on current expectations, estimates and projections about the Company’s business, and beliefs and assumptions made by management. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates”, “predicts,” “potential,” “should,” or “will” or the negative thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to: availability of financing for growth, availability of adequate supply of high quality grapes, successful performance of internal operations, impact of competition, changes in wine broker or distributor relations or performance, impact of possible adverse weather conditions, impact of reduction in grape quality or supply due to disease or smoke from forest fires, changes in consumer spending, the reduction in consumer demand for premium wines, and the revenues or costs for any of our four new tasting rooms and restaurants exceeding our expectations. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic economic conditions.

Many of these risks as well as other risks that may have a material adverse impact on our operations and business, are identified in Item 1A “Risk Factors” in our Annual Report on Form 10-K. 

The following is the Company’s Statement of Income for the three months and nine months ended September 30, 2023 compared to the three and nine months ended September 30, 2022:

					Three months ended				Nine months ended
					September 30,				September 30,
					2023		2022		2023		2022
SALES, NET					nbsp;     9,348,066		nbsp;     7,602,878		nbsp;   28,383,249		nbsp;   22,546,057
COST OF SALES					3,663,488		3,708,695		11,969,630		10,104,588
GROSS PROFIT					5,684,578		3,894,183		16,413,619		12,441,469
OPERATING EXPENSES
Sales and marketing					4,351,879		3,774,495		12,685,502		9,271,835
General and administrative					1,615,467		1,345,723		4,676,996		4,087,458
Total operating expenses					5,967,346		5,120,218		17,362,498		13,359,293
LOSS FROM OPERATIONS					(282,768)		(1,226,035)		(948,879)		(917,824)
OTHER INCOME (EXPENSE)
Interest income					14		1,286		19		4,579
Interest expense					(171,272)		(87,220)		(460,309)		(269,037)
Other income, net					3,700		3,734		82,421		92,403
LOSS BEFORE INCOME TAXES					(450,326)		(1,308,235)		(1,326,748)		(1,089,879)
INCOME TAX BENEFIT					123,344		358,414		363,396		298,517
NET LOSS					(326,982)		(949,821)		(963,352)		(791,362)
Accrued preferred stock dividends					(511,719)		(466,612)		(1,535,158)		(1,399,837)
LOSS APPLICABLE TO COMMON SHAREHOLDERS					nbsp;       (838,701)		nbsp;    (1,416,433)		nbsp;    (2,498,510)		nbsp;    (2,191,199)
Loss per common share after preferred dividends,
basic and diluted					nbsp;             (0.17)		nbsp;             (0.29)		nbsp;             (0.50)		nbsp;             (0.44)
Weighted-average number of
common shares outstanding, basic and diluted					4,964,529		4,964,529		4,964,529		4,964,529

 

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SOURCE Willamette Valley Vineyards