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Virgin Wines beats trading guidance as sales momentum keeps pace

·2-min read

Online wine retailer Virgin Wines has hiked its trading targets again as it maintained sales momentum despite the reopening of hospitality venues.

The company, which launched on the stock market in March, saw shares lift after it reported “strong levels of customer demand in May and June”.

Virgin Wines said revenue and earnings for the year to June 30 are therefore now expected to have been “marginally higher than previous expectations”.

Revenues for the year increased by around 30% to £73.8 million, it said in the interim trading update.

Meanwhile, it expected its earnings to have increased by 45% to £6.4 million, compared with the same period a year earlier.

The direct-to-consumer retailer told shareholders that “positive sales momentum has continued into July” despite the further easing of lockdown restrictions, which saw pubs, bars and restaurants welcome customers inside again from May.

Bosses at the business said they are confident that the trends driving growth in the online wine market “remain strong”.

Jay Wright, chief executive of the firm, said the business has come out of the past financial year in a “stronger position than ever”.

He added: “Full-year 2021 has been a transformational year for Virgin Wines, delivering significant growth in our revenue, our profit and our customer base.

“This has been achieved whilst successfully listing the business on AIM and navigating the operational complexities that comes with significant growth in a Covid world.

“Over this period, keeping our people safe, alongside maintaining the outstanding service levels our customers are so used to, has been a priority.

“I strongly believe the strength of our business model, with our consistent and proven ability to deliver increased profit in tandem with increased revenue, places us in an advantageous position when it comes to being a long-term e-commerce winner in a post-lockdown world.”

Shares in the company were 3.3% higher after early trading.

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