Virgin Wines posts full year profit uplift
Online retailer Virgin Wines has posted an uplift in full year profit despite challenging trading conditions.
In the year to 1 July, pre-tax profit rose to £5.1 million from £1.7 million a year earlier.
While group revenue fell year-on-year from £73.6 million to £69.2 million, it was 63% above pre-pandemic levels three years ago.
Jay Wright, chief executive of Virgin Wines, said: “Despite widely documented macroeconomic challenges and consumer uncertainty, Virgin Wines has continued to show its resilience and strong positioning in the direct-to-consumer online wine retail sector.
“Our business model and disciplined approach to new customer acquisitions has enabled us to retain much of the substantial growth achieved during the Covid-19 lockdowns, with almost one million cases sold in FY22, and we remain market-leading both in terms of our customer proposition and our profitability.”
Giving an update on more recent trading, Virgin Wines said a positive August gave way to a softer September due to the national period of mourning following the death of Her Majesty the Queen.
Despite the current pressures on consumers’ disposable incomes, the company suggested that it could benefit from more people opting to socialise and drink wine at home in the coming months.
Wright added: “We remain confident in the fundamentals of our business, with our emphasis on commercial opportunities through new and expanded strategic partnerships already delivering significant benefits. Our focus on high-quality, exclusive wines and award-winning service to our loyal customers will continue to be our key priority.”
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