Tue, May 13, 8:35 PM (40 days ago)
**Willamette Valley Vineyards, Inc. (WVVI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $7,541,583, a 14.3% decrease from Q1 2024 ($8,803,080). This decline was due to a decrease in distributor sales, partially offset by an increase in direct consumer sales. - **Profit Margins:** Gross profit margin increased to 63.1% in Q1 2025 from 59.9% in Q1 2024, due to higher retail prices. However, the company reported a net loss of $728,981, a 39.7% increase in net loss compared to Q1 2024. - **Cash Flow:** The company used $1,337,263 in cash for operating activities and $115,344 for investing activities in Q1 2025. Financing activities generated $1,464,613, primarily from long-term debt proceeds. - **Earnings Changes:** Net loss applicable to common shareholders increased by 19.1% in Q1 2025 compared to the same period in 2024. **Quarterly Performance Discussion:** - **Sales:** Direct consumer sales increased by $24,318, while distributor sales decreased by $1,285,815. - **Expenses:** Selling, general, and administrative expenses decreased by 4.2%, primarily due to lower legal costs. - **Interest Expense:** Increased by 29.8% due to higher debt levels. - **Income Tax Benefit:** Increased by 39.7% due to a higher pre-tax loss. **Trends and Uncertainties:** - The company is focusing on strategic growth through property purchases, development, and preferred stock issuance, which may negatively impact near-term financial results. - The company faces uncertainties related to grape supply, weather conditions, and consumer demand for premium wines. - The company believes that cash flow from operations and existing credit facilities will be sufficient to meet long-term needs. **Future Operations Impact:** - The company aims to continue building brand recognition, expanding direct-to-consumer sales, and effectively distributing its products nationally. - The company's success depends on its ability to grow and purchase high-quality grapes, vinify them into premium wines, and achieve significant brand recognition.