Scheid Vineyards Inc. reports sales of $22.3 million in the first nine months of the company’s fiscal year, up from $21.8 million. The company’s net loss was nearly halved to $3.7 million from $7.2 million.
“Our case goods sales and direct sales revenues are slightly ahead of last fiscal year, increasing 3% through the third quarter, despite COVID-19 related effects on the Company’s business including decreased on-premise and airline/cruise ship sales and California’s prohibition against wine tasting in our two tasting rooms for over four months,” said Mike Thomsen, CFO.
“Demand for bulk wine continues to be strong and bulk wine sales revenue has increased 177%, from $4.4 to $12.2 million in the first nine months of fiscal 2021. Grape sales declined 56% from $1.6 million to $0.7 million.
“Overall, total revenues increased 26% from the previous year nine-month period and gross profit margins increased from 21% to 25%. In addition, total sales, marketing and administrative expenses decreased 8%, from $13.4 to $12.3 million. The Company’s net loss decreased 49% to $3.7 million as compared to $7.2 million in the first nine months of fiscal 2020.”
The 2020 Harvest
Scott Scheid, president/CEO, said: “Our 2020 wine grape harvest was completed on Nov.9, 2020. Yields were down about 25% from the Company’s five-year average and it appears that wine grape yields are down state-wide, particularly in the northern areas most affected by the late summer wildfires.
“As we previously reported, there has been wine industry concern about the potential of smoke exposure negatively impacting wine quality. At this time however, we have experienced only minor issues and believe that the vast majority of our wines have not been negatively impacted and are of high quality.”