29th Jan 2025 12:22
Virgin Wines UK PLC - Norwich, England-based online wine retailer - Says revenue is flat but profit up sharply in the first half of its financial year, thanks to a strong sales performance during the key Christmas period. Virgin Wines says pretax profit in the six months that ended December 27 is GBP1.3 million, up 20% from GBP1.1 million a year before. Earnings before interest, tax, depreciation and amortisation is steady at GBP1.6 million. Revenue is flat at GBP34.1 million, compared to GBP34.3 million, but the company says operational efficiencies reduced its cost per case by 10% during the half year and by 5.4% in December alone.
Sales are up 9% in December from a year before, Virgin Wine says, hitting their highest level since the Covid-19 lockdowns, which had caused more at-home drinking. They are up 2.1% annually in the financial second quarter. The overall UK online drinks market shrank by 5%, the company says, suggesting market share gains for Virgin Wines, which records a 25% increase in new customer acquisition in December from a year before.
Looking ahead, Virgin Wines says results for the full 2025 financial year will be in line with market expectations. Citing a "clear market opportunity to consolidate our position as one of the UK's largest and well capitalised direct-to-consumer online wine retailers", it says it will discuss a new growth strategy and capital allocation policy with its full interim results in March.
Current stock price: 30.50 pence
12-month change: down 20%
By Tom Waite, Alliance News editor
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