Virgin Wines subscription sales grows 23% in H1 2022

By James Bayley

Published: 15 March, 2022

Virgin Wines, one of the UK’s largest direct to consumer online wine retailers, announced its interim results for the six months ended 31 December 2021.

The company generates the majority of its revenue through channels such as email and web and its growing subscription schemes, including WineBank, Wine Plan, and Pay As You Go.

As a result, Virgin Wines was well-positioned to take advantage of the home-delivery boom prompted by the pandemic.

Revenue for H1 2022 was £40.6m, in line with H1 2021 despite a significantly more challenging trading environment and up 55% on H1 2020. The company delivered adjusted profit before tax of £3.3m, which was broadly in line with £3.4m in H1 2021.

Sales generated by Virgin Wines subscription schemes grew 23% in H1 2022 to £26.3m compared with £21.3m in H1 2021 and by 77% compared to £14.8m in H1 2020.

The WineBank scheme continues to build with membership increasing by 11k customers (9.3%) in the past six months, delivering a 28% increase in revenue year-on-year.

Jay Wright, CEO at Virgin Wines, said: “As expected, the trading environment has evolved considerably over recent months, and given strong prior year comparatives, we have worked hard to encourage growth from our core sales channels whilst maintaining strict discipline around our customer acquisition and cost control.

“This result demonstrates the strength of the underlying business model, our discipline in acquiring good quality customers, the reliability of future subscription revenues from a highly engaged customer base and the ability to generate free cash flow as well as our award-winning consumer propositions, the quality of our wines and our outstanding customer service.

“The second half of the year has started well. We continue to make progress with our strategic initiatives and remain in line with management expectations.”

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