Scheid Vineyards Inc. reports second fiscal quarter revenue rose to $18.7 million, from $16.7 million a year earlier. After deducting expenses the net loss narrowed to $5.7 million from $6.
“During the second quarter of fiscal 2020, our cased goods sales accelerated from the first quarter,” Mr. Mike Thomsen, chief financial officer, said, “Cased goods revenues for the six months ended Aug. 31 finished up 21% over the same period last fiscal year. On the other hand, bulk wine sales decreased by 35% from the previous years’ period, as demand for bulk wine continues to be weak throughout the entire wine industry. This has led to a decrease in overall margins.”
“In addition, the bulk wine and grape business is seasonal, and a significant portion of grape crop sales revenue comes at the time of the annual harvest in September and October. Contracted bulk wine sales take place primarily in the fourth quarter of each fiscal year. The Company continues to expand its sales and marketing divisions resulting in an increase in those costs from the previous year, which were partially offset by a decrease in spending on general and administrative expenses.”
Scott Scheid, president/CEO, said the 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 just over two-thirds completed with harvest and yields appear to be trending below average levels for most varieties.”