Willamette Valley Vineyards said net profit in the third quarter was $427,996, or 9 cents share, for the third quarter, down 8.5% from $467,979, or 9 cents per share year earlier. This decrease is primarily the result of accrued preferred stock dividends increasing more than the increase in net income, the company said.
Third quarter sales rose 8.5% to $5,143,588 from $4,741,711 a year earlier. This increase was caused by an increase in direct sales of $211,063 and an increase in sales through distributors of $190,814.
Income from operations was $1,098,231 and $994,303 for the third quarters of 2017 and 2016, respectively, an increase of $103,928 or 10.5%. This increase was the result of growth in revenue that outpaced growth in selling, general and administrative expenses.
Jim Bernau, Founder and President of the winery, said “The growth in Income from operations is healthy. As expected, the dividend expense will negatively impact Net Income until such time as the capital raised is fully put to work to generate additional earnings.”