Virgin Wines ‘confident’ of hitting targets as sales lift
25 March 2024, 12:24
The company told shareholders that revenues grew by 2% to £34.3 million for the half-year to December 29.
Virgin Wines said it is “confident” of meeting targets for the year after its sales grew despite pressure on consumer spending.
Shares improved on Monday morning as a result.
Jay Wright, chief executive of the retail business, hailed the “positive first-half performance”, which he said included strength over the key Christmas period.
The company told shareholders that revenues grew by 2% to £34.3 million for the half-year to December 29, compared with the same period a year earlier.
Virgin Wines said it benefited from resilient demand and new strategic initiatives, as it seeks to bounce back from a loss in the previous financial year due to cost inflation and teething problems in its new warehouse systems.
The group said earnings for the latest half-year rose by 122% to £1.76 million and have put it on track to meet profit guidance for the year.
The firm said profitability has been improved by better cost controls and reduced levels of product inventory.
Mr Wright added: “Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties.
“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.”
Shares in Virgin Wines were 5.22% higher at 40p after morning trading.
