The group said its earnings for the latest half-year rose by 122% to £1.76 million and this has put it on track to meet its profit guidance for the year
Virgin Wines has said it is “confident” of meeting its targets for the year after seeing a rise in sales, despite shoppers tightening their belts.
The company’s shares went up on Monday morning as a result. Jay Wright, the chief executive of the retail business, praised the “positive first-half performance”, which he said was strong over the important Christmas period.
The company told its shareholders that its revenues had grown by 2% to £34.3 million in the half-year leading up to December 29, compared with the same time last year. Virgin Wines said it did well because of steady demand and strategic initiatives, as it tries to recover from a loss last financial year due to rising costs and problems in its new warehouse systems.
The group said its earnings for the latest half-year rose by 122% to £1.76 million and this has put it on track to meet its profit guidance for the year. The company said costs are under control and it has also reduced ethe amount of product inventory.
Mr Wright added: “Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties. Looking ahead, we remain optimistic about the future prospects of the group.”
He concluded: “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.”
The value of Virgin Wines shares rose by 5.22% to 40p following the morning’s trading.
