Virgin Wines says its full-year figures are on track to meet expectations – and that it expects shoppers will continue to buy wine online, staying with habits that they formed in lockdown.
Virgin Wines chief executive Jay Wright says says the retailer is finishing the 2021 full year in “excellent shape”, and adds: “Whilst we will all be watching with interest consumer trends that may develop over the coming year, we have seen nothing but encouraging signs over recent months that the customers we have acquired are staying loyal, our subscription schemes are as robust as ever, and that our ability to attract new customers at a competitive cost per recruit remains. I strongly believe the strength of our business model, with our consistent and proven ability to deliver increased profit in tandem with increased revenue places us in an advantageous position when it comes to being a long-term ecommerce winner in a post lockdown world.”
Virgin Wines said in an update on trading for the year to June 30 today that it now expects revenues to come in at £73.8m, 30% up on the previous year and 74% up on its pre-pandemic 2019 financial year. Earnings before interest, tax and asset writedowns (EBITDA) are expected to come in at £6.4m, up 45% from £4.4m a year earlier. That’s “marginally" ahead of market expectations of £73m in revenue and EBITDA of £6.3m. The retailer currently has net cash of £8.4m and is looking how best to invest it.
Wright says: “FY21 has been a transformational year for Virgin Wines, delivering significant growth in our revenue, our profit and our customer base. This has been achieved whilst successfully listing the business on AIM and navigating the operational complexities that comes with significant growth in a Covid world. Over this period, keeping our people safe alongside maintaining the outstanding service levels are customers are so used to has been a priority.”
Virgin Wines is a Top500 retailer in RXUK Top500 research.