Virgin Wines posts fall in revenue
Virgin Wines has posted annual revenue of £59 million compared to £69.2 million in the prior year.
In the 12 months to 30 June, adjusted pre-tax profit came in at £0.6 million versus £5.2 million a year earlier.
Meanwhile, adjusted EBITDA declined to £1.8 million from a previous £6.2 million.
Jay Wright, chief executive of Virgin Wines, said: “FY23 has been a year affected by a number of challenges, from well-documented macroeconomic headwinds to a number of one-off, exceptional issues, most specifically relating to the implementation of our new warehouse management system in H1.
“Despite this, we have continued to grow our WineBank membership, maintain excellent discipline in our customer acquisition channel and deliver a healthy balance sheet, remaining debt free with £5.5 million cash reserves and much reduced levels of stock.”
Giving an update on current trading, Virgin Wines said it has seen a 12% increase in year-on-year sales in the first quarter of its new financial year. As previously announced, it expects to achieve double-digit sales growth in the full year, with an EBITDA margin of around 4% to 5% as inflationary pressures, particularly on freight and glass, start to ease.
Wright said: “We remain confident in our longer-term prospects given the strength of the customer proposition and our proven business model. Our continued focus on profit, generating cash and driving efficiencies also positions us uniquely within the sector. These pillars will remain consistent elements of our strategy moving forward.”
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