Virgin Wines CEO hailed its ‘transformational year’ which saw revenues at the online wine specialist rise 30% in the year to June 2021 – for the second year in a row.
Group revenue rose from £56.6 million in FY2020 to £73.6 million in the year to 30 June 2021 – an overall increase of 73% on the 2019 financial year. The company’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was £7 million, up from £4.8 million in 2020 – representing a margin of 9./5%.
Profit before tax and exceptional items increased 86% to 5.2 million, and there was a slight rise in the gross profit margin, up from 30.3% in the previous financial year, to 31.6%.
The company also reported strong rise in commercial revenue, up 72.7%, with repeat direct-to-consumer revenues up nearly a third (31%) and gifting up 75%. There was also “substantial” year-on-year growth of its customer base across core channels – up 24% overall, with WineBank increasing its base by 22%, Wine Plan up 16% and Pay As You Go customers up 51%.
There was also a 97% uplift in its craft beer and cider offer.
It said that customer demand remained “buoyant” with continued support from customers who had come to the business during lockdown period as well as “continued appetite from new potential customers to venture into the online wine and subscription-based markets for the first time”.
Chief executive officer Jay Wright said it had been a “milestone” year for the Group, after it opened on the public markets and emerged in a stronger financial position.
“Our focus this year has been on acquiring increased numbers of new customers, converting them to become long-term advocates of Virgin Wines, whilst maximising the loyalty of our existing customers, and in turn, driving growth in our overall customer base,” he said. “I am delighted that all of these objectives were met and that all our core trading channels have seen substantial year-on-year growth. We have also seen substantial growth in our gift and commercial channels, made significant headway in developing our craft beer and quality spirit offerings, all whilst continuing to deliver the very highest levels of customer service.
He said the team would continue to work with stakeholders to maintain momentum
“Whilst we remain mindful of the potential impact from the easing of lockdown restrictions on consumer spending patterns, recent customer retention data has proven promising and we are confident that Virgin Wines, underpinned by underlying, subscription-weighted growth drivers, its strong brand and unique customer proposition remains well placed to take advantage of future consumer trends,” he said.
