Virgin Wines posts strong growth on pre-pandemic levels
Virgin Wines has seen its annual sales decline to £69 million from £73.6 million in the previous year.
However, revenue in the year ending 30 June was 63% up on pre-pandemic levels three years ago due to the company retaining much of the substantial growth achieved during Covid-19 lockdowns.
Meanwhile, EBITDA post-IFRS came in at £6.3 million compared to £7 million in the prior year. This was significantly up on three years ago with a rise of 136%.
Virgin Wines said membership of its main WineBank subscription scheme climbed by 8% in the period year-on-year. Revenue from subscription customers contributed 81% of direct-to-consumer sales compared to 67% a year earlier.
Furthermore, 105,000 new customers were acquired across all schemes in the year, which was 5% ahead of expectations.
Virgin Wines said the commercial arm of its business continues to perform well. It has recently signed new partnerships with greeting cards retailer Moonpig and Great Western Railway.
Jay Wright, chief executive of Virgin Wines, said: “The popularity of our unique consumer propositions, our low customer acquisition costs, our high levels of customer retention and the outstanding quality and value of our wines continue to give us great confidence for the future.
“Our growth, driven by a substantial pipeline of new partnerships to drive increased customer acquisition, will continue in a post Covid world, and we continue to drive levels of profitability unseen elsewhere in our market sector whilst maintaining our gross margins despite the widely documented global cost pressures.”
