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Virgin Wines announces 2% revenue increase

Published:  25 March, 2024

Virgin Wines, one of the UK’s largest direct-to-consumer online wine retailers, has today (25 March) announced a 2% revenue growth in the six months ended 29 December 2023 (H1 2024).

The company’s H1 performance was underpinned by the introduction of several initiatives including its budget-focused Warehouse Wines proposition showing encouraging early results.

Virgin saw its total revenue increase to £34.3m (H1 2023: £33.6m), while EBITDA1 was up 122% to £1.76m (H1 2023: £0.75m).

The retailer’s customer base remains active and loyal, with an ongoing focus on high-quality customer acquisition – new customer conversion rates were up 22% year-on-year while the cancellation rate of its flagship wine club, WineBank, was at an 18-month low at 16.8%.

“We are pleased to report a positive first half performance, with the underlying business performing well including through the peak Christmas period, and the introduction of our key strategic initiatives better positioning the company to achieve further growth into the future,” said Jay Wright, CEO of Virgin Wines.

“Our customer base remains active and loyal, with cancellation rates continuing to trend positively despite macroeconomic uncertainties. We remain focused on high-quality customer acquisition and are pleased that our conversion rate increased by 22% year-on-year. Our flagship WineBank offering continues to prove popular, with the scheme achieving its second-highest H1 revenue since inception.”

The current trading outlook looks positive for Virgin and the retailer is confident it will meet its FY24 profit expectations.

“Warehouse Wines, our new proposition, has delivered encouraging early results, bringing in almost 2,000 previously ‘lapsed’ customers, and we have received positive feedback on our brand refresh. We expect a full-year profit for 2024 in line with market expectations and continue to look at opportunities to continue our growth trajectory moving forward,” Wright added.