Virgin Wine’s share price was up +1.31% this morning as it published its key Christmas trading update and details of its recent performance
Virgin Wine published a trading update this morning, which showed strong Christmas trading that included a +6.70% growth in revenues, in the six weeks to December 27th, when measured year over year.
Overall sales in December 2024 were up +9.0% compared to those in the same period in 2023, this was the group’s best performance since the Covid-19 lockdowns.
Those sales were boosted by an increase in the size of the customer base, which registered a +25.0% growth spurt compared to the year before.
First-half revenues came in at £34.10 million broadly in line with performance in 2023, whilst profit before tax grew by +20.0%, no mean feat in the current climate. Cancellation rates also fell to an all-time low of -14.90%.
Virgin Wine has retained a strong cash position with net cash on hand of £17.3 million and customer wine bank deposits of £6.40 million.
Management also highlighted that a new JV with Ocado, which was launched in October 2024 had already delivered positive results, as had the firm’s Warehouse Wines venture which has amassed 17,600 customers and generated £1.0 million in revenue.
Virgin Wines has also been able to reduce its costs per case, by just over -10.0% in the first half and by -5.40% during December.
Looking ahead the board is confident that FY 2025 will be in line with market expectations, and tantalisingly they promised to outline a new growth and capital allocation policy, with the interim figures in March.
Rival Naked Wine has also published a peak season trading update today.
The firm described trading over the Christmas period as solid and in line with expectations however, revenues fell by -8.90%, whilst active members declined by -10.0% though core retention rates increased to 81.0% and revenue per customer also grew by 2.0%.
Naked Wine’s net cash position improved to stand at £30.0 million and its inventory was reduced by £47.0 million. The business will update its shareholders about strategic initiatives, and its plans to create shareholder value in late March.
Naked Wine’s share price has rallied almost +10.0%, as the market warms to the turnaround story in preference to the more conservative changes at Virgin Wines, which have posted only modest gains today.
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