Following a trading update issued in July, Virgin Wines has released results for the year to June 30.
In line with the update and group expectations, revenues came in at £59 million, compared to £69.2 million in FY22. Pre-pandemic sales, in FY19, were £42.3 million.
Adjusted profit before tax was £0.6 million, down from £5.2 million a year prior.
Looking to the current trading period, Virgin flagged a 12% year-on-year sales increase in the first quarter of its FY24 trading period. The company also expects to introduce initiatives identified during the group’s business review during Q2 and Q3, with benefits expected to be seen in the second half of the year. This includes a new value proposition launching in late October, a premium Australian Wine Club and a brand refresh.
Chief executive Jay Wright said: “FY23 has been a year affected by a number of challenges, from well-documented macroeconomic headwinds to a number of one-off, exceptional issues, most specifically relating to the implementation of our new Warehouse Management System in H1. Despite this, we have continued to grow our WineBank membership, maintain excellent discipline in our customer acquisition channel and deliver a healthy balance sheet, remaining debt free with £5.5m cash reserves and much reduced levels of stock.”