UK: Fine wine, online sales help Majestic FY profits
- Profits before tax up 2.2% to GBP23.7m (US$37.3m)
- Sales fall 2.1% to GBP274.4m
- Online sales up 14.7%
- Fine wine sales up 9.4%
Majestic was helped by fine wine and online sales
Majestic Wine has reported a slight rise in full-year profits as online and fine wine sales propped up its performance.
Group profits before tax in the 12 months to end of April rose by 2.2% to GBP23.7m (US$37.3m), the Watford-headquarted retailer said today (17 June). Overall sales in the period fell by 2.1% to GBP274.4m.
However, online transactions were up by 14.7% and now represent 11% of its UK sales, the company reported.
The average price of a bottle of wine bought at Majestic also increased from GBP7.34 last year, to GBP7.56.
Sales of fine wine, a segment priced at GBP20 and above per bottle, also rose by 9.4%, and represented 6.5% of all store purchases, Majestic said.
English wine sales also "significantly increased", the group said, without giving further detail.
Majestic opened 16 stores in the year and is on-track to reach 330 in the UK, it said.
Current trading is "in line" with expectations, while the group said it is "well prepared" for summer.
Chief executive Steve Lewis said: “Majestic is in excellent shape and has made good progress with the four key elements of our future growth strategy: new stores, business customers, ecommerce and fine wine.”
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