Thursday, January 20, 2022

Profits down but sales up as Majestic Wine presses on with turnover plan

Alcohol retailer Majestic Wine has recorded a gross profit loss of £4.4 million in its half-year to date, but with a sales uptick of 10.6 per cent the chief executive insists the company‘s “plan is working”.

The pre-tax profit figures came about as a result of a step up in investment needed to deliver sustainable growth as well as the acquisition of Naked Wines during the half-year period ending September 26.

On a like-for-like basis, retail sales at Majestic Wine went up 5.7 per cent, while commercial sales had an uptick of 1.2 per cent.

Meanwhile, sales at the company‘s Naked Wines arm surged 26.7 per cent.

The retailer admitted that while “challenges remain” it reiterated its goal of reaching £500 million by 2019.

“Our plan is working,” Majestic Wine group chief executive Rowan Gormley said.

“We said that we would deliver sustainable growth, not by opening more stores, but by investing in better customer service and better customer retention.

“Both of these are working – sales are up over 10 per cent and the projects driving that sales growth, like nationwide next day delivery, are on time and on budget.

“Now that we have built a solid platform for future growth, future cost growth will be much lower.”

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