UK: Majestic posts rising FY profits
UK wine retailer Majestic Wine has reported an 11% rise in full-year profits as consumers continued to spend more on higher-priced wines.
Majestic today (19 June) posted a 10.7% year-on-year rise in operating profit to GBP14m (US$25.6m) for the year to 27 March as sales rose 6% to GBP172.2m.
Chief executive Tim How (pictured) said that the average bottle price of still wine purchased at Majestic rose to GBP5.59 from GBP5.51, while the average spend per transaction has risen to GBP118 from GBP113 last year.
How said: "Sales of fine wine continue to grow strongly. We have seen an increase of 30% in sales, and still wine priced at £20 and above, now represents just over 3.1% of UK retail sales."
Majestic saw on-line sales leap 38% last year with Internet transactions representing almost 6% of the company's UK sales. However, Wine and Beer World, Majestic's retail chain in France, suffered with sales down over 7% as the amount of UK day-trippers across the Channel fell.
Nevertheless, How said: "We believe that Majestic is in a strong position to continue to expand market share and has the potential to trade from around 200 locations in the UK. We are encouraged by our ability to attract new customers and see good potential for the future growth of Majestic."
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