- Pre-tax loss of £1.5m
- Revenue up 15.8%
- Profit fall attributed to Naked Wines unsuccessful US campaign
Majestic Wine reported a full-year pre-tax loss, which boss Rowan Gormley attributed to the “most risky and cost intensive” phase of the retailer’s transformation plan.
The specialist retailer posted a pre-tax loss of £1.5m in the 53 weeks to April 3, down from a profit of £4.7m the previous year.
Majestic Wine attributed the loss to non-cash charges associated with the acquisition of Naked Wines.
The retailer reported adjusted pre-tax profit down 14% to £12.9m, compounded by Naked Wines unsuccessful direct mail campaign in the US during the first half of the financial year
Sales during the period were up 15.8% during the 53-week period in comparison with a 52-week period during the previous year, and up 11.4% on an underlying basis.
This sales increase was driven by a 12% jump in customer numbers and a 5.7% boost in like-for-like sales, marking the retailer’s eighth consecutive quarter of growing like-for-likes.
Multichannel orders now account for 56% of Majestic Wine’s group sales.
‘Past the tipping point’
Chief executive Rowan Gormley said: “We are past the tipping point, both financially and operationally.
“Financially, adjusted EBIT in the second half of the year is up 51.0% on prior year.
“Operationally, we are through the most risky and cost intensive phase of our transformation plan.
“Together these mean we have a business that is better able to weather the uncertain trading environment, with a sustainable growth model, the big strategic questions answered, a better paid and rewarded workforce and more effective systems and processes.”
The retailer also announced that chairman Phil Wrigley will step down from the board in August and will be succeeded by non-executive director Greg Hodder.