The direct-to-consumer wine retailer said “external market pressures” meant EBITDA would likely be negative this year.

Virgin Wines said it expects EBITDA of -£200,000 in its trading year ending July 3, 2026, compared with market expectations for a positive £100,000. The wine retailer added it was now expecting a loss before tax of £1.5m instead of £1m.

This is despite expectations for revenue growth to be around 4% this year, “compared to an online drinks sector that has experienced a decline year on year.”

The company cited a “challenging consumer market” for the weaker than expected results.

“Whilst the business has worked hard to mitigate the material increases in costs, particularly with regards to increased duty and EPR (expected producer responsibility),” the company said in a statement. “It has proved difficult to eliminate these completely when partnered with a worsening consumer environment.”

The company said that it had seen positive sales trends each quarter, with Q1 at -4.5%, improving to 5% in Q2 and 8% in Q3.

Alongside the financial update, the wine retailer said it had signed a lease for a new warehouse in Preston. Build and fit out is expected to take place during the next financial year, with the company exiting its site in Bolton by the end of February 2027.

Virgin Wines said that the move would “provide meaningful synergies, economies of scale and structural operational benefits from FY28 onwards, while removing transport costs between the current Preston and Bolton facilities.”

The move will lead to exceptional operating costs of around £700,000 and increased capex of around £1.6m. Virgin Wines added that investment in the new warehouse facility is funded through existing cash reserves and that it remains debt-free.

“We are pleased to have agreed a lease for a new warehouse in Preston, streamlining our operations and providing significant synergies and economies of scale, all funded from our strong cash position,” said Virgin Wines chief executive Jay Wright.

“Our execution against the key pillars of our growth strategy is delivering encouraging progress, despite that growth now being slightly slower than our original plan due to external market pressures. We are evidencing that the strategy is working, and we remain focused on taking further market share and continuing to invest in our growth channels.”

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