26th Sep 2022 11:59
(Alliance News) - Chapel Down Group PLC on Monday said its first-half performance was in line with management expectations for all of 2022.
The Tenterden, Kent-based company said its outlook for the second half of 2022 remains positive. Having divested its Beer and Cider business on 23 April 2021, Chapel Down is now focused solely on the growth of its English wine business.
Pretax profit rose by 6.4% to GBP488.7 million from GBP459.2 million in the same period of 2021, as net sales revenue rose by 4.1% to GBP6.9 million from GBP6.6 million. Strong growth momentum in the sale of its sparkling wines, up 35% from the first half of 2022, drove sales.
Chief Executive Officer Andrew Carter said sparkling wine sales were crucial for the 51% gross margin achieved since January. After a hot summer, this year's strong harvest is expected to produce a good yield, enabling the production of higher volumes of sparkling and still wines in 2023 and aiding plans to double the size of the business in the next five years.
Carter also highlighted that Chapel Down's brand awareness "driven higher this year by partnerships with the England and Wales Cricket Board, the Boat Race, and Ascot".
The balance sheet remains strong, the company said, swinging to net cash of GBP3.8 million as of June 30 from net debt of GBP850,000.
Chapel Down shares were last traded on AQSE at 27.53 pence on Monday morning in London, up by 3.9%.
By Holly Beveridge; [email protected]
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