Virgin Wines has reported a “resilient” half-year performance as it targets £100m in revenue under a new growth plan.
For the six months to December 27, 2024, Virgin Wines reported revenue of £34.1m, down from £34.3m in the first half of last year.
Virgin Wines hailed “strong profitability” during the first half with profit before tax up 20% to reach £1.3m. EBITDA remained “in line” at £1.6m for the period.
The specialist retailer also noted its “strong performance” over the Christmas period, with revenue up 6.7% in the six weeks to December 27, to £13.5m.
Virgin Wines said trading during the second half had “started positively” as its product offering continues to prove a hit with customers.
The retailer has announced a new strategic growth plan, which includes a focus on customer acquisition, commercial partnerships, the Warehouse Wines business and a new app.
The strategy is set to be implemented across the business over the next five years with the objective of generating “at least” £100m in revenue by the end of that period as well as EBIT margins of 7%.
Virgin Wines is also planning to implement a share buyback programme to help fund its growth plans.
Chief executive Jay Wright said the strategy “underpins” the next chapter of the business as it hopes to “turbocharge Virgin Wines’ growth and deliver value for all stakeholders”.
Wright said: “I am pleased to report a positive first-half performance, with the business delivering encouraging results, particularly during the peak Christmas trading season.
“Our strategy of acquiring high-quality customers at an industry-leading low cost per recruit, while maximising the quality and value of our wines through our unique open-source buying model, continues to position us well to navigate market headwinds.
“We have introduced a number of new strategic initiatives to diversify our offering and enable us to appeal to as many potential customers as possible. Our Warehouse Wines value proposition continues to deliver positive results, while our Vineyard Collection range and the premium Australian Five O’clock Somewhere Wine Club showcase the unquestioned expertise of our buying team alongside our network of winemakers around the world.
“We continue to work with a large range of partners to deliver increased numbers of new customers while strengthening our relationship with key commercial partners such as Moonpig and Ocado
“Today, we also announced our growth plan and capital allocation plan. This is an ambitious and transformational change in our business strategy and investment case, which we are excited to implement over the coming years.
“Virgin Wines has a unique and differentiated low-cost business model, a loyal and active customer base, and a highly experienced team that has consistently delivered industry-leading results. We are confident that the company will execute the new growth plan announced today and deliver increased value for shareholders.”
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