By Virgin Wines UK announced today that its fiscal 2023 performance aligns with expectations, demonstrating progress in strategic initiatives despite lower revenue and adjusted profit compared to the previous year.
Financial Highlights
The online wine retailer predicts revenue of £59 million ($77.2 million) and an adjusted pretax profit of at least £500,000 for the year ending June 30. In the previous year, it reported revenue of £69.2 million and an adjusted pretax profit of £5.1 million.
Challenging Quarter but Strong Foundation
Virgin Wines UK faced challenges in the third quarter due to softening consumer sentiment and increased competition. The company also experienced one-off factors, including a two-week period of national mourning following the passing of Queen Elizabeth II in September and an earlier Christmas cut-off.
Nevertheless, the company maintained a robust balance sheet and remained debt-free. Additionally, it acquired over 90,000 new customers during the fiscal period at a reduced cost compared to the previous year. Throughout the fourth quarter, conversion and cancellation rates displayed positive trends.
Optimistic Outlook
CEO Jay Wright expressed confidence in the underlying business model and growth prospects for fiscal 2024 and beyond.
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