Virgin Wines posts first profit as public company as customer numbers soar

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Following its IPO, Virgin Wines has recorded sales and profits growth, as more customers turned to shopping online.

The online wine specialist reported profit before tax up 86% to £5.2m in the year to June 30, as it saw growth across all sales channels.

Revenues rose 30% for the second consecutive year to £73.6m, which the retailer attributed to strong customer demand, loyalty and new customer acquisition.

Revenues for repeat direct-to-consumer customers increased by 31.5%, while commercial and gifting sales went up by 72.8% and 75% respectively.

Virgin Wine’s active customer base grew 24% in total year on year, largely due to an increase in its pay-as-you-go customers, which were up 51%.

The retailer has also debuted a partnership with Moonpig and continued to develop its offering in the craft beer and spirits markets.

Virgin Wines chief executive Jay Wright said: “FY21 has been a transformational year for the group, starting a new chapter on the public markets and emerging in a stronger financial position.

“Our focus this year has been on acquiring increased numbers of new customers, converting them to become long-term advocates of Virgin Wines, whilst maximising the loyalty of our existing customers, and in turn, driving growth in our overall customer base.

“I am delighted that all of these objectives were met and that all our core trading channels have seen substantial year-on-year growth.

“Whilst we remain mindful of the potential impact from the easing of lockdown restrictions on consumer spending patterns, recent customer retention data has proven promising and we are confident that Virgin Wines, underpinned by underlying, subscription-weighted growth drivers, its strong brand and unique customer proposition remains well placed to take advantage of future consumer trends.”