Drinks brand Virgin Wines saw profit dip in its audited annual results, despite hailing “encouraging progress” against all growth drivers.

Pre-tax profit fell to £1.6m for the year ended 28 June, from £1.7m the year before.

However, the business said its profitability was “ahead of expectations”, notwithstanding the “investments in our growth strategy”.

Adjusted EBITDA dropped from £2.8m in 2024 to £2.3m over the period. Total sales in-line with last year remained consistent at £59m, despite the broader drinks market contracting during the period.

The retailer also unveiled its medium-term growth strategy over the year, targeting £100m of annual revenue at a 7% EBITDA margin. The business also highlighted a 28% rise in customers acquired year on year, despite only a 6% increase in investment.

It noted that its commercial partnerships channel saw a 24% sales rise year on year, and that its new partnership with Ocado was “performing strongly” as well as the extension of its tie-up with Moonpig.

The brand said trading remained in line with expectations so far in FY26, as it continued to “make progress across all pillars of the growth strategy”.

Virgin Wines CEO Jay Wright said: “FY25 was a milestone year for Virgin Wines, being both our 25th anniversary but also the year in which we announced our medium-term growth strategy, a step-change for the business as we significantly increase our investments in organic growth opportunities. 

“During the year, we delivered a resilient performance, with revenue in-line with the prior year against a market that contracted and with profits being ahead of expectations, despite a challenging consumer backdrop and significant cost pressures.”

Click here to sign up to Retail Gazette‘s free daily email newsletter