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Majestic posts 24% rise in profits

Published:  23 July, 2008

Wine-by-the-case specialist Majestic Wine has posted another year of record pre-tax profits - up 23.9% to 13.2 million.

Majestic generated 162.5 million of sales from its 122 warehouses, an increase of 9.6%.

Majestic's chief executive Tim How highlighted internet sales, which now represent 4.5% of UK retail sales, as a growth area. Corporate sales also grew to 28% of sales.

We saw good sales growth in wines from Bordeaux, Italy, South Africa, New Zealand, Chile and Argentina,' said How. In addition, Champagne and ros sales grew strongly.' He added that the performance of Bordeaux was particularly encouraging, as sales of higher-priced wines were particularly strong.

Average bottle price rose from 5.40 to 5.51, and average spend per transaction from 107 to 113.

The Wine and Beer World stores in France performed less well, with sales growth curtailed to 1.5% due to fewer British shoppers making the trip across the Channel.

How added: We operate in an expanding market, where consumers continue to show a strong interest in a greater choice of better-quality wines. We believe that the prospects for future growth at Majestic are very good.'

Like-for-like sales in the first 10 weeks of the current year (to 6 June) showed a 7% rise in sales in its Majestic stores.

As first announced earlier in the year, Majestic also confirmed that Simon Burke, current chairman of Irish retailer Superquinn, will replace John Apthorp as chairman in August.