
Virgin Wines has reported a “highly encouraging” performance over the key Christmas trading period and outperformed the wider market, although revenue remained flat year on year.
Revenues increased 6.7% year on year over the six weeks to 27 December, with sales over the month as a whole up 9% year-on-year.
The wine specialist said it was the highest level seen since the peak period during the Covid lockdowns.
The retailer added its Christmas performance was underpinned by initiatives to grow its customer base and optimise acquisitions, as well as strategic marketing and focused promotional activity. It resulted in a 25% year-on-year increase in new customers during December.
Virgin Wines CEO Jay Wright said: “We are pleased to report an encouraging first-half performance, and particularly strong year-on-year growth of 6.7% over the key six-week Christmas trading period despite the continued sector and macro-economic headwinds.
“We delivered increased levels of new customers, improved our operating cost per case and continued to drive high growth through our Commercial channel. We continue to increase market share thanks to the loyalty of our customers, our outstanding customer service and the quality of our wines.”
Revenues in the first half to 27 December were broadly in line with the previous year at £34.1m.
Second-quarter sales rose 2.1% year on year despite subdued trading conditions.
Pre-tax profits jumped 20% in the half to £1.3m, with EBITDA unchanged at £1.6m.
Virgin Wines added its new partnership with Ocado, which launched in October, had delivered positive early results.
As a result of the “encouraging” first-half performance, the board remained confident of delivering on market expectations for the full year.
“Our strong balance sheet and healthy cash position gives us the opportunity to invest in growth and I look forward to sharing those exciting plans when we come to announce our interim results in March,” said Wright.
“In the meantime, we are confident of delivering a strong H2 performance.”
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