Virgin Wines delivers improved profitability and “resilient” revenue
Virgin Wines has posted improved profitability and revenue in line with the previous year in the 52 weeks to 30 June.
Revenue came in at £59 million in the period while EBITDA increased by 260% to £2.8 million.
In a trading update, the company said it expects to deliver a pre-tax profit of £1.95 million compared to a loss £430,000 in the previous year. The improvement was driven by better margins and operational efficiencies, particularly in warehouse fulfilment.
Despite the impact of inflation and ongoing cost pressures, the company increased its gross margins to 31.9% from 29.6% a year earlier.
Jay Wright, chief executive officer at Virgin Wines, said: “I am pleased to report a full-year performance with resilient sales despite a challenging consumer and inflationary market backdrop.
“Both EBITDA and PBT were ahead of expectations, being significantly up year-on-year due to expanded gross margins and reduced operating variables.”
Virgin Wines said its new value proposition Warehouse Wines, which launched last year, has made an “encouraging” start with a particularly strong fourth quarter and an improving rate of customer acquisition.
Looking ahead, Wright added: “Demand remains strong for our range of wines and subscription schemes.
“We enter FY25 with the business performing well, and we remain confident for the future due to the strength of the underlying business model, our disciplined cost control and unique sourcing model.”
