Scheid Vineyards Inc. reports net of $14.4 million, or $16.08 a share, in the third quarter, sharply reversing a year-earlier of of $3.7 million. Sales rose to $43.4 million.
“Cased goods sales increased 26% in the current period, primarily as the result of increased distribution of the Company’s Sunny with a Chance of Flowers brand, which was launched in the fall of 2020, and sales to airlines which were limited in the previous year due to COVID-19 travel restrictions,” said Mike Thomsen, CFO..
Bulk wine sales decreased 77% from the previous year as the Company continues to increase the use of its bulk wine inventories in cased goods production, the company said. In addition, bulk wine sales in the previous year were aided by increased demand from the potential threats to the 2020 crop from California wildfires, as well as lower than average industry-wide bulk wine supplies. Winery processing revenues increased by 23% and grape sales increased by 453% in the fiscal 2022 period, generally reflecting higher yields from the 2021 harvest. Overall, total revenues increased 3% and gross margins increased to 28% from 25% in the previous fiscal year.”
Sales and marketing expenses increased 19%, from $6.3 to $7.5 million, as the Company invested in the marketing of new brands and territories. The Company recognized a gain of $24.2 million from the sale of vineyard properties in the first quarter of fiscal 2022 and, due to the reduction in debt from proceeds from the sale, interest expense decreased 35% from $3.5 million to $2.6 million. The Company had net income of $14.4 million in the first nine months of fiscal 2022 as compared to a net loss of $3.7 million in fiscal 2021.
Thomsen said Scheid completed its 2021 grape harvest on Nov. 16, 2021, with yields per acre approximately 6% above the Company’s five-year average”