- Full-year sales on a reported basis jump 41.3% to £402.1m
- Pre-tax profits dive 74.5% to £4.7m
- Majestic retail like-for-likes up 4.8%, first rise in four years
Majestic Wine has reported a 41% jump in annual sales but its bottom line was hit by the costs from its acquisition of Naked Wines.
Sales in the year to March 28 hit £402.1m, the wine specialist said today. At its Majestic Wine stores like-for-likes rose 4.8%, the first rise in four years.
Naked Wines, which was acquired by Majestic in April last year, posted a 27.3% leap in sales to £104.3m, boosted by its US performance.
However, the group’s pre-tax profits dived 74.5% to £4.7m, which the retailer attributed to “substantial non-cash charges relating to the Naked Wines acquisition”.
On an adjusted basis pre-tax profits fell from £21.6m to £15m, which was owing to investment costs and interest on debt facilities.
The retailer has completed the first year of a three-year turnaround plan and has a new senior management team in place.
Chief executive Rowan Gormley said: “We have taken the first step on a long journey – it was a good start but it is just the first step. Early signs are that the plan is starting to work.
However he warned: “We still have lots to do and although we are on course to deliver our three-year plan, it won’t be without challenges.”
Gormley said UK trading conditions will remain “tough” and currency movements will push up the cost of goods.
But he added: “Our plan… remains unchanged, as does our goal – £500m sales by 2019.”
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