US: Vineyard sale reverses Scheid Vineyards year so far

By | 21 November 2007

Scheid Vineyards has reversed its net loss in the year so far, albeit through the sale of one of its vineyards.

The California-based company said today (21 November) that net income for the nine months to the end of September reached US$1.1m, compared to a net loss in the corresponding period in 2006 of $1m. The turnaround came on the back of the sale of a 360-acre vineyard earlier this year for $4.2m.

Losses from continuing operations, however, matched the nine-month period last year, hitting $1.6m. Sales in the year so far rose slightly, meanwhile, to $19.2m from $15.6m.

For the third quarter, net loss worsened, down to $597,000 from $95,000 year-on-year, on sliding sales, down to $4.7m from $7.1m.

"(The sales) increase (in the nine months to the end of September) was driven primarily by sales of bulk wine and other revenues generated by the company's winery," said company CFO, Mike Thomsen. "These increases were partially offset by a decrease in grape sales, primarily because the company converted 80% of its third quarter grape production into bulk wine in 2007, as compared to only 38% in the third quarter of 2006.

Turning to this year's harvest, Thomsen said: "Yields in the company's vineyards, and throughout the state of California, were lower than those of 2006 and 2005. These lower yields and the sale of the 360-acre vineyard, combined to decrease the 2007 harvest to 17,000 tons, as compared to 22,800 tons in 2006, a 25% reduction."

Sectors: Wine

Companies: Scheid

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