SCHEID FAMILY WINES REPORTS THIRD QUARTER FISCAL 2025 RESULTS
SCHEID FAMILY WINES REPORTS THIRD QUARTER FISCAL 2025 RESULTS |
| [20-January-2025] |
SALINAS, Calif., Jan. 20, 2025 /PRNewswire/ -- Scheid Vineyards Inc. (dba Scheid Family Wines) (OTC Markets: SVIN) announced today its financial results for the nine months ended November 30, 2024 (third quarter of fiscal 2025). Financial Results Total revenues decreased 17%, to $43.3 million for the nine months ended November 30, 2024, from $52.4 million in fiscal 2024. Cased goods sales decreased 6%, to $32.2 million in the first nine months of fiscal 2025, from $35.2 million in fiscal 2024, as the bottled wine business across the entire market slowed in calendar 2024. The Company's bulk wine sales decreased 22%, to $2.1 million from $2.7 million, and grape sales decreased 23%, to $1.0 million from $1.3 million. Revenues from winery processing and storage decreased 50%, to $5.2 million from $10.4 million as the result of the dissolution of a winery processing contract and a lighter than usual 2024 harvest. Gross margins decreased to 26% from 30%, primarily from a reduction in bulk wine sales prices. Industrywide, the bulk wine market continues to be over-supplied, leading to slower sales as well as reduced prices. Sales and marketing expenses decreased 18%, to $6.8 million from $8.3 million, and general and administrative expenses decreased 6%, to $5.0 million from $5.3 million. During the first quarter of fiscal 2025, the Company recognized revenue of $3.6 million from proceeds received from the early termination of a winery processing agreement. During the second quarter of fiscal 2025, the Company recognized a gain from the sale of non-vineyard land in the amount of $1.7 million. Interest expense rose 146%, to $11.8 million from $4.8 million, due to increases in interest rates as each of the Company's lenders are accruing interest at the default rate of an average of 14.2%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $8.5 million from $6.2 million, primarily from the proceeds from the early termination of a processing agreement and land sale. In total, the Company reported a net loss of $6.8 million for the nine months ended November 30, 2024, compared to a net loss of $1.8 million for the nine months ended November 30, 2023. 2024 Harvest Update The Company's 2024 grape harvest was completed on October 30, 2024. Overall yields were approximately 15% below the Company's five-year average yields and are generally consistent with wine grape yields from Monterey and other California coastal vineyard regions.
About Scheid Family Wines Scheid Family Wines, a family-owned and operated wine company for over 50 years, is ranked among the top 25 largest wine producers in the United States. Based in Monterey County, California, Scheid is vertically integrated to bring high quality estate grown wines to the marketplace from its sustainably and organically certified vineyards and grower partners throughout the Central Coast. Scheid's innovative, luxury-level winery is 100% powered by renewable wind energy generated by a 400-foot-tall wind turbine, which also supplies energy to the local community. The Scheid Family Wines globally distributed brand portfolio includes Scheid Vineyards, Sunny with a Chance of Flowers, VDR (Very Dark Red), Grandeur (organically certified), Fog & Light, Metz Road, District 7, Ryder Estate, and HOXIE, a premium wine spritzer. Scheid Family Wines sells internationally to over 30 countries and is one of the largest producers of premium exclusive brands. Please visit www.scheidfamilywines.com and www.otcmarkets.com/stock/SVIN/quote for more information.
SOURCE Scheid Family Wines | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: OTC-BB:SVIN, OTC-PINK:SVIN | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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