Majestic Wine has posted dive-bombing annual sales figures in the midst of its turnaround, as its chairman announces his departure.
In the year to April 3 underlying profits before tax fell 29 per cent to £12.9 million while pre-tax losses came in at £1.5 million, down from a £4.7 million profit a year prior.
However, Majestic Wine is adamant its turnaround strategy is working, stating it was “past the tipping point, both financially and operationally”.
Much of its losses were attributed to its business overhaul, and underlying earnings for its second half rose 51 per cent while underlying sales grew 11.4 per cent year-on-year.
Its core Majestic Wine chain also saw its eighth quarter of growth with a 5.7 per cent rise in sales.
Meanwhile, its online brand Naked Wines also showed promising growth of 26.3 per cent and overseas operations saw a significant boost, growing 52.7 per cent to £88 million over the year.
“We remain confident about the medium-term outlook, despite tough economic conditions, as transformation benefits are coming through and our costs are naturally coming down as a result of us reaching the next stage of the transformation plan,” chief executive Rowan Gormley said.
The results were published with the group’s chairman Phil Wrigley announcing his imminent retirement.
He will be succeeded by non-executive director Greg Hodder.