Virgin Wines has reported a jump in profits ahead of market expectations, driven by growth in its value proposition Warehouse Wines and a surge in commercial sales through partners like Ocado and Moonpig.

In its full-year trading update to 30 June 2025, the online wine retailer said EBITDA rose to £2.3m and pre-tax profit hit £1.6m — ahead of consensus forecasts and despite both figures dipping slightly year-on-year due to ongoing investment in its growth strategy.

Revenues held steady at £59m in what the company described as a “subdued consumer environment”, outperforming the wider online wine market, which saw sales fall 9.7% over the same period, according to IMRG data.

Warehouse Wines delivered £1.8m in its first full year of trading, while commercial sales jumped 24% year-on-year. Customer acquisition also rose 28%, with acquisition costs climbing just 6%.

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Operating costs as a percentage of revenue dropped to 11%, down from 11.8% in FY24, maintaining what the business described as the sector’s “lowest cost to serve”.

Virgin Wines ended the year with net cash of £9.3m and remains debt free. Its gross cash position, including WineBank customer deposits, totalled £17.6m.

“As we celebrate our 25th anniversary this year, I am delighted to report excellent progress across all our key growth drivers. Both EBITDA and PBT were ahead of market expectations, and we have seen impressive growth in both our Commercial channel and our value proposition, Warehouse Wines, two key elements of the growth strategy which we set out in March,” said CEO Jay Wright.

“We have continued to drive increased levels of loyalty from customers on our key WineBank subscription scheme, whilst our marketing and operational costs have both reduced substantially year-on-year despite the inflationary environment.

“In a highly competitive sector, we have been delighted to see healthy market share gains with customers continuing to rate highly our exclusive portfolio of wines, and our outstanding levels of service.”

The group said its new mobile app remains on track for launch in early 2026.

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