Majestic Wine has posted an uptick in profits and sales amid its full year results, mainly driven by its independent winemaking business Naked Wines.
However, the British wine retailer warned that the UK market will remain challenging.
Majestic Wine’s full-year revenue grew 2.3 per cent to £476.1 million for the 52-week period ending April 2, which was boosted by an 11.3 per cent underlying sales growth in the Naked Wines division.
Meanwhile, overall adjusted pre-tax profit surged 33.3 per cent year-on-year to £17.2 million and adjusted EBIT grew 29.1 per cent year-on-year to £18.2 million.
Majestic Wine group chief executive Rowan Gormley said the firm was “making headway despite headwinds”.
“We expect the UK market to remain tough, possibly even tougher than last year,” he added.
“Despite this, we expect to hit FY19 market expectations.”
Chairman Greg Hodder said consumer spending was under pressure and costs were continuing to rise, while competition from online rivals and discount grocers Aldi and Lidl continued to bite.
Hodder warned short-term profits may be more “volatile”, and while the company planned to maintain a progressive dividend for the current financial year, there was a chance that dividend growth could be suppressed in the medium term as Majestic Wine prioritises growth investment.