Willamette Valley Vineyards Posts a Profit for 2021

SALEM, Ore., March 29, 2022 /PRNewswire/ — Willamette Valley Vineyards, Inc. (NASDAQ: WVVI) (the “Company”), a leading Oregon producer of Pinot Noir, generated income per common share after preferred dividends of $0.20 and $0.46 for the years ended December 31, 2021 and 2020, respectively, a decrease of $0.26, or 56.6%, for the year ended December 31, 2021 over the prior year period. 

The Company had net sales revenues of $31,786,864 and $27,314,852 for the years December 31, 2021 and 2020, respectively, an increase of $4,472,012 or 16.4%, for the year ended December 31, 2021 over the prior year period primarily as a result of an increase in revenue from direct sales of $2,739,589 or 26.0% in 2021 compared to 2020, combined with an increase in revenue from sales to distributors of $1,732,423 or 10.3% in 2021 compared to 2020.

Gross profit  was  $18,665,673  and $16,729,776 for the years ended December 31, 2021 and 2020, respectively, an increase of $1,935,897, or 11.6%, for the year ended December 31, 2021 over the prior year period.  This increase was generally driven by an increase in sales revenues partially offset by a higher cost of sales.

Selling, general and administrative expenses were  $14,975,654  and $11,728,003 for the years ended December 31, 2021 and 2020, respectively, an increase of $3,247,651, or 27.7%, for the year ended December 31, 2021 over the prior year period.

Net income was  $2,445,463 and  $3,394,996, for the years ended December 31, 2021 and 2020, respectively, a decrease of $949,533, or 28.0%, for the year ended December 31, 2021 over the prior year period.

Jim Bernau, Founder and CEO of the winery said “Our largest volume products are continuing to experience high demand such that we are now very tight on inventories and are allocating some key wines. We believe this tight inventory situation will limit our revenue growth until such time as we can rebuild our wine inventories. We are also expecting to experience some margin reductions in 2022, mostly as a result of certain supply logistical delays and much higher packaging prices. We believe that our higher SG&A costs in 2021 are enabling us to build a stronger sales and administrative foundation to support our growth, which we believe will lead to greater profitability in the long term.”

For a complete discussion of the Company’s financial condition and operating results, see our Form 10-K for the year ended December 31, 2021, as filed with the United States Securities and Exchange Commission on EDGAR. 

Willamette Valley Vineyards, Inc. is headquartered at its Estate Vineyard near Salem, Oregon.  The Company’s common stock is traded on NASDAQ (WVVI).