Willamette Valley Vineyards Reports Increased Net Loss and Revenue Decline in Q1 2025

Willamette Valley Vineyards, Inc. reported a net loss of $728,981 for the first quarter of 2025, compared to a net loss of $521,805 in the same period of 2024, marking an increase in losses of 39.7%. The company's revenue for the three months ended March 31, 2025, was $7,541,583, a decrease of 14.3% from $8,803,080 in the prior year. This decline was primarily attributed to a significant drop in distributor sales, which fell by $1,285,815, while direct-to-consumer sales saw a modest increase of $24,318, largely due to higher wine club revenues.

The cost of sales also decreased to $2,782,475 from $3,530,358, reflecting a 21.2% reduction, which was consistent with the lower volume of cases sold. Gross profit for the quarter was reported at $4,759,108, down 9.7% from $5,272,722 in the previous year. Despite the decrease in gross profit, the gross profit margin improved to 63.1%, up from 59.9%, due to higher retail prices for products sold directly to consumers.

Operationally, the company sold 33,080 cases of wine during the first quarter of 2025, a decrease of 23.5% from 43,208 cases sold in the same quarter of 2024. The decline in sales volume was primarily due to fewer points of distribution compared to the previous year. As of March 31, 2025, the company had a total inventory of 213,444 cases of bottled wine and 628,019 gallons of bulk wine. The company’s cash balance increased slightly to $332,889 from $320,883 at the end of 2024, while total liabilities remained relatively stable at $39.7 million.

In terms of strategic developments, Willamette Valley Vineyards continues to focus on enhancing its direct-to-consumer sales channels and expanding its wine club membership. The company has also been actively involved in the issuance of Series A Redeemable Preferred Stock, which has attracted approximately 14,385 new preferred stockholders, potentially increasing its customer base. Looking ahead, management anticipates that the ongoing investments in property development and strategic planning may negatively impact short-term financial results, but they believe these efforts will position the company for future growth. The company remains committed to maintaining compliance with its financial covenants and expects to leverage cash flow from operations and existing credit facilities to meet its long-term financial needs.