SALEM, Ore., May 13, 2024 /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 $0.22 and $0.25 for the three months ended March 31, 2024 and 2023 respectively, a decrease of $0.03, for the three month period ended March 31, 2024 over the same three month period in the prior year.
Sales revenue for the three months ended March 31, 2024 and 2023 was $8,803,080 and $8,308,940, respectively, an increase of $494,140, or 5.9%, in the current year period over the prior year period. This increase was caused by an increase in revenues from direct sales of $214,507 and an increase in revenues from shipments to distributors of $279,633 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, 2024 and 2023 was $5,272,722 and $4,478,463, respectively, an increase of $794,259, or 17.7%, in the first quarter of 2024 over the same quarter in the prior year. This increase was primarily the result of a combination of an increase in direct sales combined with higher margins from our sales through distributors in the first three months of the current year compared to the same period in 2023.
Selling, general and administrative expenses for the three months ended March 31, 2024 and 2023 was $5,875,299 and $5,453,413, respectively, an increase of $421,886, or 7.7%, in the current quarter over the same quarter in the prior year. This increase was primarily the result of an increase in selling expenses of $44,202, or 1.1% and an increase in general and administrative expenses of $377,684, or 25.7% in the current quarter compared to the same quarter last year. Selling expenses increased in 2024 compared to 2023 primarily as a result of having an additional tasting room location in 2024. General and administrative expenses increased in the first quarter of 2024 compared to the same quarter of 2023 primarily as a result of higher legal costs.
Net loss for the three months ended March 31, 2024 and 2023 was $521,805 and $744,823, respectively, a decrease of $223,018, or 29.9%, in the first quarter of 2024 over the same quarter in the prior year. The decrease in net loss for the first quarter of 2024, compared to the comparable period in 2023, was primarily the result of higher prices of products sold in 2024.
Jim Bernau, Founder and CEO of the Company said, "In spite of the headwinds in the wine market, I believe our increasing gross margins and profits are a result of improved production management, selective cost cutting combined with the sales growth of higher quality, higher priced wines from our estate vineyards. Our wine enthusiast focused strategy through stock ownership offering multiple facilities with wine and culinary experiences is bearing fruit."
For a complete discussion of the Company's financial condition and operating results for the first quarter 2023, see our Form 10-Q for the three months ended March 31, 2024, 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, 2024 compared to the three months ended March 31, 2023:
Three months ended | ||||||
March 31, | ||||||
2024 | 2023 | |||||
SALES, NET | $ 8,803,080 | $ 8,308,940 | ||||
COST OF SALES | 3,530,358 | 3,830,477 | ||||
GROSS PROFIT | 5,272,722 | 4,478,463 | ||||
OPERATING EXPENSES: | ||||||
Sales and marketing | 4,027,782 | 3,983,580 | ||||
General and administrative | 1,847,517 | 1,469,833 | ||||
Total operating expenses | 5,875,299 | 5,453,413 | ||||
LOSS FROM OPERATIONS | (602,577) | (974,950) | ||||
OTHER INCOME (EXPENSE) | ||||||
Interest expense | (229,687) | (124,422) | ||||
Other income, net | 98,052 | 73,586 | ||||
LOSS BEFORE INCOME TAXES | (734,212) | (1,025,786) | ||||
INCOME TAX BENEFIT | 212,407 | 280,963 | ||||
NET LOSS | (521,805) | (744,823) | ||||
Accrued preferred stock dividends | (563,177) | (511,719) | ||||
LOSS APPLICABLE TO COMMON SHAREHOLDERS | $ (1,084,982) | $ (1,256,542) | ||||
Loss per common share after preferred dividends, | ||||||
basic and diluted | $ (0.22) | $ (0.25) | ||||
Weighted-average number of | ||||||
common shares outstanding, basic and diluted | 4,964,529 | 4,964,529 | ||||
SOURCE Willamette Valley Vineyards
