SALEM, Ore., May 13, 2025 /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 $0.26 and $0.22 for the three months ended March 31, 2025 and 2024 respectively, an increase of $0.04, for the three month period ended March 31, 2025 over the same three month period in the prior year.
Sales revenue for the three months ended March 31, 2025 and 2024 was $7,541,583 and $8,803,080, respectively, a decrease of $1,261,497, or 14.3%, in the current year period over the prior year period. This decrease was caused by a decrease in revenues from distributor sales of $1,285,815, partly offset by an increase in direct sales to consumers of $24,318 in the current year's three-month period over the same period in the prior year.
Gross profit for the three months ended March 31, 2025 and 2024 was $4,759,108 and $5,272,722, respectively, a decrease of $513,614, or 9.7%, in the first quarter of 2025 over the same quarter in the prior year. This decrease was primarily the result of a decrease in sales through distributors.
Selling, general and administrative expenses for the three months ended March 31, 2025 and 2024 was $5,629,086 and $5,875,299, respectively, a decrease of $246,213, or 4.2%, in the current quarter over the same quarter in the prior year. This decrease was primarily the result of a decrease in selling expenses of $60,072, or 1.5% and a decrease in general and administrative expenses of $186,141, or 10.1% in the current quarter compared to the same quarter last year. General and administrative expenses decreased in the first quarter of 2025 compared to the same quarter of 2024 primarily as a result of lower legal costs.
Net loss for the three months ended March 31, 2025 and 2024 was $728,981 and $521,805, respectively, an increase of $207,176, or 39.7%, in the first quarter of 2025 over the same quarter in the prior year. The increase in net loss for the first quarter of 2025, compared to the comparable period in 2024, was primarily the result of lower case sales to distributors in 2025.
Jim Bernau, Founder and President of the Company said "This first quarter reflects the current challenges in national distribution through our wholesalers. In order to help address these challenges, we have hired Mike Osborn as our new Chief Executive Officer. Mike, who was the founder of Wine.com, will bring to the Company extensive experience in the wine industry."
For a complete discussion of the Company's financial condition and operating results for the first quarter 2025, see our Form 10-Q for the three months ended March 31, 2025, 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 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 Operations for the three months ended March, 31, 2025 compared to the three months ended March 31, 2024:
Three months ended | |||||||
March 31, | |||||||
2025 | 2024 | ||||||
SALES, NET | $ 7,541,583 | $ 8,803,080 | |||||
COST OF SALES | 2,782,475 | 3,530,358 | |||||
GROSS PROFIT | 4,759,108 | 5,272,722 | |||||
OPERATING EXPENSES: | |||||||
Sales and marketing | 3,967,710 | 4,027,782 | |||||
General and administrative | 1,661,376 | 1,847,517 | |||||
Total operating expenses | 5,629,086 | 5,875,299 | |||||
LOSS FROM OPERATIONS | (869,978) | (602,577) | |||||
OTHER INCOME (EXPENSE) | |||||||
Interest expense, net | (298,221) | (229,678) | |||||
Other income, net | 142,476 | 98,043 | |||||
LOSS BEFORE INCOME TAXES | (1,025,723) | (734,212) | |||||
INCOME TAX BENEFIT | 296,742 | 212,407 | |||||
NET LOSS | (728,981) | (521,805) | |||||
Accrued preferred stock dividends | (563,177) | (563,177) | |||||
LOSS APPLICABLE TO COMMON SHAREHOLDERS | $ (1,292,158) | $ (1,084,982) | |||||
Loss per common share after preferred dividends, | |||||||
basic and diluted | $ (0.26) | $ (0.22) | |||||
Weighted-average number of | |||||||
common shares outstanding, basic and diluted | 4,964,529 | 4,964,529 | |||||
SOURCE Willamette Valley Vineyards
