Willamette Valley Vineyards, an Oregon-based producer of Pinot Noir, has reported a net profit of $219,912 for the second quarter (Q2) ended 30 June 2012, an increase of 27.6%, against a net profit of $172,369 for the comparable prior year period.

Sales revenue decreased 0.4%, compared to that of the last year quarter.

Gross profit for the second quarter of 2012 increased by 1.3% to $21,511, compared to the second quarter of 2011.

Net income rose by 27.6% to $47,543 from the comparable prior year period.

The increase in net income was mainly due to combination of better overall gross margin percentage and the reduction of expenses related to discontinued operations.

Sales, general and administrative expenses grew 11.7% to $126,705 over the prior year second quarter.

The increase in sales, general and administrative expenses was primarily due to increase in the company’s sales effort to compensate for changes from its Oregon self-distribution to restaurants and stores to selling through a wine wholesaler.

Willamette Valley Vineyards founder and president Jim Bernau said the current quarter’s higher net profit was due to its focus on its core mission.

"While we operated a successful wine distributorship through Bacchus Fine Wines, increasing government regulation made it a heavy administrative burden," Bernau added.