Willamette Valley Vineyards Posts Results for 2024

Rhea-AI Summary

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.

Positive

• 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

Negative

• 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

Financial Analyst

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 147.4% improvement. This turnaround stems from three key factors: gross profit increasing 7.3% to $24.2 million, modest 1.7% revenue growth to $39.8 million, and controlled SG&A expenses (down 0.6%).

The company's loss per share improved substantially from $0.65 to $0.48, a 26% reduction year-over-year. This progress comes despite higher preferred stock dividends offsetting some gains. The sales mix is trending favorably with direct-to-consumer sales (typically higher margin) growing 3.6% while distributor sales declined slightly by 0.5%.

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.

Wine Industry Expert

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 1.7% revenue growth actually impressive in relative terms.

The company's strategic emphasis on direct-to-consumer channels (up 3.6%) perfectly aligns with where the market is heading. Premium wineries increasingly find their distributor relationships delivering diminishing returns as the three-tier system struggles with overcrowding and shifting consumer preferences.

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 (7.3% increase) suggest they're successfully commanding premium pricing – critical in an environment where volume growth is challenging across the category.

SALEM, Ore., March 25, 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 $0.48 and $0.65 for the years ended December 31, 2024 and 2023, respectively, a decrease of $0.17, or 26.0%, for the year ended December 31, 2024 over the prior year period. The primary reason for this decrease was a lower net loss partially offset by higher preferred stock dividends in 2024 compared to 2023.

The Company had net sales revenues of $39,782,442 and $39,136,114 for the years December 31, 2024 and 2023, respectively, an increase of $646,328, or 1.7%, for the year ended December 31, 2024 over the prior year period primarily as a result of an increase in revenue from direct sales, net of excise taxes, of $736,057, or 3.6% in 2024 compared to 2023, being partially offset by a decrease in revenue from sales to distributors of $89,729 or 0.5% in 2024 compared to 2023.

Gross profit was $24,195,456 and $22,557,128 for the years ended December 31, 2024 and 2023, respectively, an increase of $1,638,328 or 7.3%, for the year ended December 31, 2024 over the prior year period. This increase was primarily the result of higher prices being charged for products and a higher percentage of total sales coming from direct sales in 2024 compared to the prior year.

Selling, general and administrative expenses were $23,623,598 and $23,764,330 for the years ended December 31, 2024 and 2023, respectively, a decrease of $140,732, or 0.6%, for the year ended December 31, 2024 over the prior year period. This decrease was primarily as a result of lower labor selling costs in 2024.

Income(loss) from operations was $571,858 and $(1,207,202) for the years ended December 31, 2024 and 2023, respectively, an increase of $1,779,060, or 147.4%, for the year ended December 31, 2024 compared to the prior year period. This increase was primarily the result of a higher gross profit and lower labor operating expenses in 2024.

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 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 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

FAQ

What was Willamette Valley Vineyards (WVVI) net sales growth in 2024?

WVVI reported a 1.7% increase in net sales to $39.78 million in 2024 compared to $39.14 million in 2023.

How much did WVVI's direct sales revenue increase in 2024?

Direct sales revenue increased by 3.6% in 2024, while distributor sales decreased by 0.5%.

What was WVVI's loss per share in 2024 compared to 2023?

Loss per common share after preferred dividends improved to $0.48 in 2024 from $0.65 in 2023, a 26.0% decrease.

How much did Willamette Valley Vineyards' gross profit improve in 2024?

Gross profit increased by 7.3% to $24.20 million in 2024 from $22.56 million in 2023.

What was WVVI's operating income in 2024 versus 2023?

Operating income improved to $571,858 in 2024 from a loss of $1,207,202 in 2023, a 147.4% increase.