Majestic reports strong sales growth but swings to first half loss
In the six months to 26 September, total sales increased by 13.2% year-on-year to £205.6 million.
However, the company made a pre-tax loss of £4.4 million compared to a profit of £4.3 million in the same period in the previous year after taking into account £4.5 million of adjusted items, largely relating to Majestic’s acquisition of Naked Wines.
Like-for-like Majestic retail sales rose by 5.7% with the performance driven by a 9.1% increase in customer numbers. This in turn was underpinned by improvements in product availability and customer retention.
Naked Wines saw its sales increase by 26.7% despite a failed direct mail campaign.
Meanwhile, Majestic Commercial sales edged up 1.2% in the period.
Rowan Gormley, Majestic group chief executive, said: “A year ago, we laid out a detailed plan to restore the Majestic group to long term sustainable growth. "Sustainable" being the key word.
“To do that we have to transform Majestic from a single country, single channel retailer into an international, multi-channel, multi proposition business.
“That plan is well underway and beginning to work.
“We remain confident that we are on track to deliver our goal of £500 million in sales by 2019, and that this sales growth will translate into long term, sustained growth in shareholder returns.”
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