Virgin Wines confident of meeting FY expectations after 'positive' H1

Virgin Wines said on Monday that it was confident of meeting its full-year 2024 profit expectations following a "positive" first-half performance.

In the six months to 29 December 2023, pre-tax profit came in at £1.1m, up from £90,000 a year earlier, with revenue 2% higher at £34.3m.

Underlying earnings before interest, tax, depreciation and amortisation rose 122% to £1.76m and earnings per share increased to 1.4p from 0.1p.

The company said its first half performance was positive "in spite of cost and consumer pressure".

Increased profit was driven by "the revenue lift, an increase in gross margins, significantly reduced operating variables and prudent cost control in relation to our customer acquisition," it said.

Sales from the direct-to-consumer channels were up 4.5% and revenue from its B2B business was up 6.5% year-on-year.

Sales generated through the company’s email and SMS marketing were particularly positive, it said, with revenue attributable to these channels 16% ahead of the first half 2023.

Chief executive Jay Wright said: "We are pleased to report a positive first half performance, with the underlying business performing well including through the peak Christmas period, and the introduction of our key strategic initiatives better positioning the company to achieve further growth into the future.

"Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties. We remain focused on high quality customer acquisition and are pleased that our conversion rate increased by 22% year-on-year. Our flagship WineBank offering continues to prove popular, with the scheme achieving its second highest H1 revenue since inception.

"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."