Virgin Wines shrugs off market weakness as sales hit post-Covid high
Virgin Wines shrugs off market weakness as sales hit post-Covid high
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Virgin Wines outperformed the broader online drinks sector after enjoying its best December sales since the first Covid-19 lockdown. The retailer, which was founded by Sir Richard Branson's Virgin Group, revealed revenues rose by 9 per cent last month, thanks to bumper growth in its commercial channel and a recently launched partnership with Ocado.
Consequently, its turnover broadly flatlined at £34.1million in the six months ending 27 December, compared to £34.3million in the first half of last year. Virgin said this proved it 'significantly outperformed' the online drinks market, which shrank by 5 per cent over the period.
Luxury giant LVMH reported also reported on Wednesday that its wine and spirits division saw organic sales slump 8 per cent year-on-year in the fourth quarter, though this was slightly ahead of consensus. Virgin also highlighted weaker consumer confidence and discretionary spending in the wake of the Autumn Budget.
Overall retail sales fell by an estimated 0.3 per cent last month, according to recent Office for National Statistics figures, partly due to subdued trading at supermarkets. Cheers: Virgin Wines has enjoyed its best ever December sales since the Covid-19 lockdown.
Virgin's half-year pre-tax profits also soared by a fifth to £1.3million as it cut the cost of an average case by 10.1 per cent. Meanwhile, its earnings before nasties remained at £1.6million even though the firm boosted investment in gaining new customers and its Warehouse Wines proposition.
