Virgin Wines posts uplift in sales and profit
Virgin Wines, the direct-to-consumer online wine retailer, has announced an uplift in half-year sales and profit.
In the six months to 29 December, total revenue increased by 2% to £34.3 million while underlying EBITDA climbed by 122% to £1.76 million.
Meanwhile, pre-tax profit rose to £1.1 million from £0.1 million at the same time last year.
In addition to the revenue lift, Virgin Wines attributed the increased profit to an improvement in gross margins, significantly reduced operating variables, and “prudent” cost control in its work to acquire new customers.
Sales from the company’s direct-to-consumer channels were up 4.5% in the period while revenue in its B2B business was 6.5% higher year-on-year.
Jay Wright, chief executive at Virgin Wines, said: “We are pleased to report a positive first half performance, with the underlying business performing well including through the peak Christmas period, and the introduction of our key strategic initiatives better positioning the company to achieve further growth into the future.
“Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties.”
Virgin Wines said it remains confident that it will achieve a positive year-on-year performance and that full year profit will be in line with expectations. despite a challenging consumer environment.
Wright added: “Looking ahead, we remain optimistic about the future prospects of the group. Warehouse Wines, our new proposition, has delivered encouraging early results, bringing in almost 2,000 previously ‘lapsed’ customers, and we have received positive feedback on our brand refresh.
“We expect a full year profit for 2024 in line with market expectations and continue to look at opportunities to continue our growth trajectory moving forward.”
