Willamette Valley Vineyards Posts Results for 2024
Willamette Valley Vineyards (NASDAQ: WVVI), a leading Oregon Pinot Noir producer, reported its 2024 financial results. The company reduced its loss per common share after preferred dividends to $0.48 in 2024 from $0.65 in 2023, marking a 26.0% improvement.
Key financial highlights include:
- Net sales increased 1.7% to $39.78 million in 2024
- Direct sales revenue grew 3.6%, while distributor sales decreased 0.5%
- Gross profit rose 7.3% to $24.20 million
- Selling, general and administrative expenses decreased 0.6% to $23.62 million
- Income from operations improved to $571,858 in 2024 from a loss of $1.21 million in 2023
CEO Jim Bernau noted that despite declining industry sales trends, the company expects to benefit from its recently established retail locations as operations mature, emphasizing their unique wine enthusiast ownership strategy for long-term shareholder value.
- Reduced loss per share by 26.0% to $0.48
- Net sales growth of 1.7% to $39.78 million
- Direct sales revenue increased 3.6%
- Gross profit improved 7.3% to $24.20 million
- Operating expenses decreased 0.6%
- Turned operating loss into profit of $571,858
- Still operating at a net loss per share of $0.48
- Distributor sales declined 0.5%
- Industry facing declining sales trends
- Higher preferred stock dividends in 2024
Insights
Willamette Valley Vineyards' 2024 results show operational improvement despite ongoing profitability challenges. The most significant positive is the company's shift from an operating loss of $1.2 million in 2023 to an operating profit of $571,858 in 2024 – a
The company's loss per share improved substantially from
The improved pricing power demonstrated in these results suggests the company maintains strong brand positioning despite industry headwinds. However, the persistence of bottom-line losses indicates Willamette still faces fundamental challenges converting operational improvements into shareholder returns. The lack of specific guidance or details about cash position, debt levels, or capital allocation strategies leaves questions about long-term financial sustainability, though the operational trajectory is clearly improving.
Willamette Valley Vineyards' performance must be viewed against the backdrop of widespread challenges in the wine industry. The CEO's acknowledgment of "current declining sales trends" confirms what we're seeing across the premium wine segment, making their
The company's strategic emphasis on direct-to-consumer channels (up
The reference to their "wine enthusiast ownership strategy" is particularly noteworthy. Willamette has pioneered a unique business model allowing wine enthusiasts to become owner-customers, creating brand ambassadors with financial stakes in the business. As traditional marketing channels become less effective and more expensive, this community-based approach may provide sustainable competitive advantage.
Their retail expansion approach runs counter to the broader industry consolidation trend but may prove prescient. By increasing direct touchpoints with consumers while competitors retreat, Willamette positions itself to capture market share as the industry stabilizes. The improved gross margins (
The Company had net sales revenues of
Gross profit was
Selling, general and administrative expenses were
Income(loss) from operations was
Jim Bernau, Founder and CEO of the Company said "Given current declining sales trends in our industry, the Company believes it will benefit from the increase in the number of retail locations recently established as their operations mature. The wine market, both in sales directly to consumers and through wholesalers to their restaurant and retail accounts, is changing and I believe that our unique wine enthusiast ownership strategy gives us the opportunity to produce long term shareholder value."
For a complete discussion of the Company's financial condition and operating results, see our Annual Report on Form 10-K for the year ended December 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
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 Operations for the year ended December 31, 2024 compared to the year ended December 31, 2023:
Year ended | |||||||
December 31, | |||||||
2024 | 2023 | ||||||
SALES, NET | $ 39,782,442 | $ 39,136,114 | |||||
COST OF SALES | 15,586,986 | 16,578,986 | |||||
GROSS PROFIT | 24,195,456 | 22,557,128 | |||||
OPERATING EXPENSES: | |||||||
Sales and marketing | 17,119,837 | 17,564,103 | |||||
General and administrative | 6,503,761 | 6,200,227 | |||||
Total operating expenses | 23,623,598 | 23,764,330 | |||||
INCOME (LOSS) FROM OPERATIONS | 571,858 | (1,207,202) | |||||
OTHER INCOME (EXPENSE) | |||||||
Interest expense, net | (1,016,180) | (594,079) | |||||
Other income, net | 99,629 | 114,827 | |||||
LOSS BEFORE INCOME TAXES | (344,693) | (1,686,454) | |||||
INCOME TAX BENEFIT | 226,799 | 487,861 | |||||
NET LOSS | (117,894) | (1,198,593) | |||||
Preferred stock dividends | (2,252,941) | (2,047,097) | |||||
NET LOSS APPLICABLE TO COMMON SHAREHOLDERS | $ (2,370,835) | $ (3,245,690) | |||||
Loss per common share after preferred dividends, | |||||||
basic and diluted | $ (0.48) | $ (0.65) | |||||
Weighted-average number of | |||||||
common shares outstanding, basic and diluted | 4,964,529 | 4,964,529 | |||||
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SOURCE Willamette Valley Vineyards
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