Virgin Wines revenues rise 6.7% over Xmas season

Virgin Wines has reported that revenues rose by 6.7% year-on-year during the six-week period to 27 December 2024, as sales were 9% higher than the Christmas before – the highest level since the pandemic lockdowns. 

According to the online wine retailer, its performance over Christmas was underpinned by initiatives to grow the customer base and optimise customer acquisition, as well as strategic marketing and focused promotional activity. 

The group’s efforts also resulted in a 25% year-on-year rise in new recruits during December 2024.

While first half revenues were slightly lower at £34.1m compared with £34.3m in the same period last year, Virgin Wines was found to have “significantly” outperformed the online drinks market which declined by 5%. 

Profits before tax in the first half also jumped by 20% year-on-year to £1.3m.

Despite increased investment in customer acquisition and Warehouse Wines during the period, EBITDA was unchanged from last year at £1.6m 

In addition, second quarter sales rose by 2.1% year-on-year despite trading conditions continuing to be subdued following the general election and autumn budget. 

Jay Wright, CEO of Virgin Wines, said: “We are pleased to report an encouraging first-half performance, and particularly strong growth over the key Christmas trading period despite the continued sector and macro-economic headwinds. We continue to increase market share thanks to the loyalty of our customers, our outstanding customer service and the quality of our wines. 

“Our strong balance sheet and healthy cash position gives us the opportunity to invest in growth and I look forward to sharing those exciting plans when we come to announce our interim results in March. In the meantime, we are confident of delivering a strong H2 performance.”