Majestic Wine has posted soaring profits in its half year results, boosted by growth in its Naked Wines division and a turnaround strategy that is starting to bear fruit.
For the 26 weeks to October 2, Majestic Wine’s adjusted profit before tax surged to £6.77 million after only achieving £51,000 for the same period last year.
Meanwhile, the alcohol retailer’s statutory profit before tax swung to £3.1 million compared to the £4.4 million loss recorded in the first half of last year.
Adjusted earnings before interest and tax also surged from £700,000 to £7.33 million year-on-year, while revenue rose 5.7 per cent to £217.4 million.
The British retailer’s Naked Wines arm on its own recorded growth in all three of its markets, as well as adjusted earnings before interest and tax of £4.72 million compared with a loss £2.78 million a year ago.
Majestic Wines, which has 210 retail stores across the UK as well as two branches in France, said it expected full-year results to be in line with current expectations and that its turnaround strategy was starting to bear fruit.
It added that it would look to boost sales in the medium term through higher investment in new customer acquisition.
“The plan is on track. Two years in and profits are growing, our foundation is solid and we are ready to accelerate growth,” chief executive Rowan Gormley said.
“We have the opportunities to invest in new customers and a team excited to focus on what they do best. It’s time to put our foot on the gas.
In this half, Naked Wines has demonstrated the quality of its model, people and management, by achieving profitability in all three geographical markets.
“It has become a disciplined business committed to continuous improvement.”