Virgin Wines FY trading meets forecast

Virgin Wines has reported that full-year revenues are expected to be £59m, and profits of “no less than £0.5m” for the year ended 30 June 2023, with trading in line with expectations.

It comes as the group said it continued to execute its “disciplined strategic approach” to customer acquisition, which saw it acquire 90,000 new customers at an average cost per recruit of £12 over the period. 

The retailer noted that conversion and cancellation rates also trended positively through its final quarter, while customer deposits into WineBank hit a seasonal high of £8m at the year-end.

In its latest trading update, the group said it has made further progress in its commercial channel, with key strategic and commercial partnerships agreed during the year, including a partnership with WH Smith Travel.

It added that it will continue to develop a number of new initiatives focused on accelerating its strategic development, which it expects to complete during the first half of 2024. 

Jay Wright, CEO of Virgin Wines, said:  “Despite the inflationary environment, we have delivered results in line with expectations. We have successfully maintained our disciplined approach to customer acquisition, conversion and cancellation rates are trending positively, and our flagship WineBank scheme continues to be resilient in challenging market conditions.

“Looking ahead, we remain confident in the underlying business model and opportunities for future growth into FY 2024 and beyond. We are well-positioned due to the uniquely sourced, high-quality nature of our wines, coupled with our market-leading expertise and strong foundations, and look forward to sharing more details on our strategic initiatives at the Full Year Results.”