Scheid Vineyards Inc. said revenue for the six months ended Aug. 31 rose 1.w% to $17.4 million. But the company’s net loss in the half widened to $6 million from $3.2 million.
“The 7% increase in revenues is primarily due to an increase in the sale of cased goods and bulk wine. The increase in revenues was offset by increased product costs, primarily as the result of increases in wine costs due to a lower than average harvest for the 2017 vintage, as well as increases in bottling costs. These increases lowered overall gross profit margins to 16% in the current period, as compared to margins of 22% in the prior fiscal period,” said Mike Thomsen, CFO.
“The increase in general and administrative, and selling expenses was due primarily to the increased emphasis on sales, marketing and related administrative support of case sales. The Company’s business is seasonal and skewed towards the second half of its fiscal year. This is primarily caused by grape sales and processing fee income during harvest, and bulk wine sales soon after harvest,” he added.
Scott Scheid, President and CEO of the Company, said:
“Our annual grape harvest began in late August, and it is anticipated that we will complete this years’ harvest in early November. This timing is normal for wine grape vineyards on the Central Coast of California. We are currently approximately 65% completed with harvest and yields appear to be at average levels for most varieties.”