THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
Omnichannel Futures Conference 2020
Online Conversion Summit 2020
Future of Retail Marketing 2020
The HR Summit 2020
AI in Retail Conference 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Majestic increases sales and profit despite tough UK market

Majestic Group has posted an uplift in full year profit and sales after benefiting from the success of its Naked Wines offering. In the year to… View Article

FOOD & DRINK

Majestic increases sales and profit despite tough UK market

Majestic Group has posted an uplift in full year profit and sales after benefiting from the success of its Naked Wines offering.

In the year to 2 April, reported sales rose by 2.3% to £476.1 million with the growth driven by an 11.3% underlying sales uplift at Naked Wines

There was also a £9.8 million improvement in pre-tax profit to £8.3 million following a loss of £1.5 million in the previous year. In addition, underlying adjusted pre-tax profit increased by 63% to £17.2 million. The group said the success was achieved despite a tough UK market. Naked Wines was key driver of profit growth with adjusted underlying EBIT six times higher than in the previous year.

Meanwhile, profits at Majestic Retail were flat with underlying sales growth of 1.9%. The group said improved cost controls within the business were offset by foreign exchange pressures on margin.

Rowan Gormley, Majestic group chief executive, said the group expects the UK market to remain tough and possibly worse than last year.

He added: “Certainly trading since year end has been harder than the prior year in the UK. Despite this, we expect to hit FY19 market expectations.”

Majestic said it will benefit from the fact that 20% of its business takes place in the growth markets of the USA and Australia and that 45% of group sales are now conducted online. 

Gormley said: “If the UK is headed for a retail crisis, as some commentators are suggesting, then we are planning for a great crisis. We founded Naked Wines during the financial crisis of 2008 and proved that investing in acquiring customers and generating loyalty through great products and service, will drive profitable growth even in a tough market.”

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Online Conversion Summit 2020
Online Conversion Summit 2020
April 30 2020
The Hallam Conference Centre, London W1W 6JJ
The Retail Bulletin Online Conversion Summit 2020 Partnered by IMRG
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Hallam Conference Centre, 44 Hallam St, London W1W 6JJ
The Future of Retail Marketing for Customer Engagement
The HR Summit 2020
The HR Summit 2020
1 October 2020
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2020
AI in Retail Conference 2020
14 October 2020
Hallam Conference Center, 44 Hallam Street, London W1W 6JJ
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY