Majestic Wine reports progress in three-year transformation plan
Majestic Wine today reported good progress in a three-year transformation plan that emphasises the customer experience across sales channels and targets sales of £500m a year by 2019.
But while sales were up by 41.3%, profits were down, following costs related to that transformation plan and to its acquisition of Naked Wines .
Majestic, a Top100 trader in IRUK Top500
research, reported sales of £402.1m in the year to March 28, 41.3% up on the same time last year. Top-line pre-tax profits of £15m were 30.3% down on the same time last year, after investment in the transformation plan, and bottom-line pre-tax profits of £4.7m were 74.5% down on the same time last year, following costs related to Majestic's acquisition of Naked Wines. Like-for-like sales, which strip out the effects of store openings and closures, were 4.8% up in what Majestic said was its first positive performance for four years.
Naked Wines, a Top500 company in IRUK Top500 research, reported sales of £104.3m and its first top-line profit, of £1m.
Through its transformation plan, Majestic envisages a best in class customer experience, a joined-up logistics strategy that ensures the right wine is in the right place, and investment in operations. So far, said Majestic, it has improved the shopping experience and improved its range, and it plans to migrate the Majestic Wine business onto Naked Wines' IT platform, which will also support improvements to the supply chain.
"We have taken the first step on a long journey," said chief executive Rowan Gormley. "It was a good start but it is just the first step. Early signs are that the plan is starting to work. Strong sales figures reflect the hard work being done on the ground by the whole team. The management reorganisation is now complete, I am delighted with the teams we have in place across the group. At Naked Wines we had a belter of a year, breaking through the £100m sales barrier and delivering a maiden profit."