Scheid Vineyd Stock Price, News & Analysis

Scheid Family Wines (SVIN) reported financial results for Q2 FY2025, showing continued challenges in the wine industry. Total revenues decreased 6% to $26.1 million, with cased goods sales down 6% to $21.2 million and bulk wine sales down 14% to $1.8 million. The company reduced sales and marketing expenses by 16% and G&A expenses by 5%. Despite cost-cutting efforts, interest expense rose 150% to $7.5 million. The company secured new forbearance agreements through July 2025, including a $5.0 million working capital boost. EBITDA improved to $4.4 million from a $1.2 million loss, aided by land sale and contract dissolution proceeds. Net loss was $3.9 million compared to $4.8 million in the previous year.

Scheid Family Wines (OTC: SVIN) reported its Q1 fiscal 2025 results, showing a 4% increase in total revenues to $15.0 million. Despite challenging market conditions, the company achieved a 1% increase in cased goods sales to $11.0 million and a 12% increase in winery processing and storage revenues to $1.1 million. Gross margins improved to 26% from 21% in the previous year. The company's cost-cutting efforts resulted in a 10% decrease in both sales and marketing expenses and general and administrative expenses. Notably, Scheid recognized $3.6 million in revenue from a dissolved winery processing agreement. Despite a 27% increase in interest expense, the company reported a net income of $0.9 million, compared to a net loss of $2.4 million in the same period last year. EBITDA improved significantly to $4.5 million from a loss of $0.1 million.

Scheid Family Wines reported its fiscal year-end results for 2024, reflecting significant challenges in the wine industry. Revenues slightly declined to $68.0 million from $68.5 million in the previous year. The company faced a $15.0 million non-cash write-down of bulk wine inventories, leading to a drastic 86% drop in gross profit to $2.5 million. Net loss escalated to $20.6 million compared to a $2.2 million net loss last year. Sales and marketing expenses decreased by 12% and general administrative expenses fell by 15%. Interest expenses surged by 45% due to higher borrowings and rising interest rates. The company is negotiating forbearance agreements and exploring alternative financing as it restructures to mitigate financial covenants and default scenarios.

Scheid Vineyards Inc. (OTC: SVIN) reported a net loss of $1.7 million for the nine months ended November 30, 2022, a significant drop from a net income of $14.4 million during the same period in fiscal 2022. Total revenues increased by 18% to $51.2 million, driven by a 26% rise in cased goods sales and a 32% increase in winery processing and storage revenues. However, gross profit margins remained stable at 28%. The company experienced a 45% decline in grape sales, while expenses such as sales and marketing rose by 29%. A non-recurring loan forgiveness of $3.7 million was also noted.

Scheid Vineyards reported a notable 35% increase in revenues for the six months ended August 31, 2022, driven by significant growth in cased goods (32%) and bulk wine sales (28%). Gross profit rose to $7.05 million, with gross margins improving from 20% to 23%. However, the company incurred a net loss of $1.44 million compared to a net income of $12.58 million in the previous year, impacted by increased expenses and non-recurring losses. The 2022 grape harvest is expected to yield 15% lower than average due to adverse weather conditions.