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Virgin Wines has reported a return to profitability in the year to 28 June 2024, as profit before tax rose by £2.4m to £1.7m, up from a previous loss of £700k.
While total revenues held steady at £59m, the wine retailer’s adjusted EBITDA rose 59% to £2.8m and gross profits increased 8% to £18.8m due to enhanced margins and operational efficiencies.
As a result, the group’s cash balances have gone up by £4.9m to £18.4m, with net cash jumping from £5.5m in FY23 to £10.3m with no debt.
Trading since the end of June until now also remained in line with market expectations, and the wine retailer has agreed a new partnership with Ocado.com.
According to Virgin Wines, it is encouraged by the progress of its strategic initiatives that were launched this year, having seen particularly strong growth in Warehouse Wines which now boasts over 8,000 customers. The group expects this channel to “significantly” contribute to its growth over the next year and beyond.
Jay Wright, CEO of Virgin Wines, said: “In July 2024 we announced our FY24 Trading Update with both EBITDA and PBT ahead of expectations. Today we are delighted to reiterate a positive full year performance, with strong profitability.
“While the sector remains challenging, demand remains strong for our different subscription schemes and award-winning range of wines. This differentiated offering, underpinned by our unique open-source buying model and loyal customer base, positions us well to continue delivering growth.”
He added: “Looking ahead, and with Q1 trading being in line with our expectations, we remain confident of delivering a strong outturn in 2025 and beyond.”
