Sales revenues in the quarter under review rose by 22% from $80.9m to $98.6m, with volumes up by 25%. However, average prices were slightly lower. Mondavi said margins were reduced as more wine was sold for the lower-priced jug wine market, while the company boosted advertising for its premium brands.
US: Mondavi back in the black in first quarter
The Californian wine group, Robert Mondavi Corp., reported net income of $8.2m, or 50 cents a share, for the first quarter to the end of September, against a net loss of $2.5m in the corresponding period last year. The previous first quarter had been affected by depressed sales as a result of 9/11 and the company also took an $11.2m charge related to its withdrawal from Disney's California Adventure.