Subscriber login Close [x]
remember me
You are not logged in.

Virgin Wines raises turnover and revenue expectations

Published:  10 May, 2021

Virgin Wine has announced that it anticipates revenue and profitability for FY21 to be ahead of its previous expectations, with turnover for the year expected to be no less than £73m and an improvement in EBITDA margin.

In a trading update for the year ending 30 June 2021, the Board said it was pleased to announce that the “strong levels” of customer demand experienced in the first half of the company's financial year had been maintained in the second half so far.

While “remaining mindful” of the potential impact from the easing of lockdown restrictions on consumer spending patterns over the coming months, the Board added it remained confident that the underlying growth drivers, which the direct-to-consumer (DTC) wine sector is experiencing, alongside the accelerated shift in consumer behaviour towards online retailing, would continue.

“The strong sales momentum delivered in the first half of the financial year has continued into H2 so far,” said CEO Jay Wright. 

“We have been encouraged by the strong customer demand for our wines, alongside growth in our new range of beers and spirits, driven by the ongoing shift in consumer behaviour towards online retailing.”

In what he described as a “transformational year" for Virgin Wines, in which it was listed on AIM, Wright also thanked the company’s “loyal customers and partners” for their continued support. 

“The Group remains well positioned to continue to deliver on our long term growth strategy, underpinned by our unique wine sourcing model and unrivalled consumer propositions, alongside our continued focus on all aspects of the customer experience and growth in our customer base,” said Wright. 

Virgin Wines is one of the UK’s largest DTC online wine retailers. More than 90% of its wines by volume are exclusive and during 2020 the company delivered over one million cases to its customers. 

Moreover, the business also sells a growing range of beers and spirits as well as having a gift service and a corporate sales department.