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LONDON - Virgin Wines UK PLC (AIM: LON:VINO), a leading direct-to-consumer online wine retailer in the UK, announced a strong performance over the Christmas period with a 6.7% increase in revenue during the six weeks leading up to December 27, 2024. The company experienced its highest sales level in December since the Covid-19 lockdowns, marking a 9% increase compared to December 2023.
The first half of the fiscal year saw revenues at £34.1 million, maintaining levels similar to the same period last year, despite the online drinks market seeing a 5% decline. This indicates Virgin Wines’ notable market share gains. The company also reported a 20% increase in profit before tax (PBT) to £1.3 million for the half-year.
A significant driver of this performance was a 25% year-on-year increase in new customer acquisitions in December, attributed to strategic marketing and promotional activities. The company’s Q2 sales increased by 2.1% year-on-year, and the Commercial channel continued to grow, with revenue up by 17% during the period and 32% in December. Virgin Wines also highlighted the success of its strategic partnership with Ocado (LON:OCDO), which began in October, and the promising performance of its new Warehouse Wines value proposition.
Operational efficiencies were realized with a reduction in cost per case by 10.1% during the half-year. The company also reported a strong cash position with £23.7 million in gross cash and £17.3 million in net cash as of December 27, 2024.
Looking ahead, the Board remains confident that the full-year 2025 results will align with current market expectations. Virgin Wines plans to unveil its Growth Strategy and new Capital Allocation Policy at the Interim Results presentation in March.
CEO Jay Wright expressed confidence in the company’s H2 performance and emphasized the company’s strong balance sheet and cash position, which will support investment in growth. He attributed the success to customer loyalty, exceptional customer service, and the quality of their wines.
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