Willamette Valley Vineyards Posts results for Q3 2021

About this update from Willamette Valley Vineyards, Inc.

[{"type":"text","content":"SALEM, Ore., Nov. 12, 2021 /PRNewswire/ -- Willamette Valley Vineyards, Inc. (NASDAQ:WVVI) (the \"Company\"), a leading Oregon producer of Pinot Noir, generated Income applicable to common shareholders for the three months ended September 30, 2021 and 2020 of $95,120 and $640,347, respectively, a decrease of $545,227, or 85.1%, in the third quarter of 2021 over the same quarter in the prior year. \nSales revenue for the three months ended September 30, 2021 and 2020 were $7,641,228 and $6,918,131, respectively, an increase of $723,097, or 10.5%, in the current year period over the prior year period. This increase was caused by an increase in direct sales of $699,172 and an increase in direct sales through distributors of $23,925 in the current year three-month period over the prior year period. The increase in direct sales to consumers was primarily the result of increased revenue from tasting room sales, phone sales, and wine club sales. \nGross profit as a percentage of net sales for the three months ended September 30, 2021 and 2020 was 58.4% and 61.0%, respectively, a decrease of 2.6 percentage points in the current year period over the prior year period mostly as a result of higher cost vintages produced in 2020 that were sold in 2021. \nSelling, general and administrative expense for the three months ended September 30, 2021 and 2020 was $3,768,765 and $2,917,363 respectively, an increase of $851,402, or 29.2%, in the current quarter over the same quarter in the prior year. This increase was primarily a result of our tasting rooms being open for more days in 2021 compared to 2020 resulting in higher labor and related costs associated with operating the tasting rooms.\nNet income for the three months ended September 30, 2021 and 2020 was $456,191 and $896,799, respectively, a decrease of $440,608, or 49.1%, in the third quarter of 2021 over the same quarter in the prior year. \nJim Bernau, Founder and CEO of the Company said, \"An unusual combination of circumstances negatively impacted the Company's financial results this past quarter, including the 2020 vintages sold in 2021 having a relatively higher cost of goods sold, as well as the incurrence of scale-up expenses including compensation costs in advance of the openings of our new winery near Dundee and three new tasting room restaurants in Lake Oswego, the Vancouver Wa...

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