UK: Prosecco sales boost Majestic Wine's H1
- Half-year net profits up 8% to GBP7.3m (US$11.8m)
- Net sales rise 3.3% to GBP130.2m
- H1 operating profits up 4% to GBP9.6m
- First-half Prosecco sales up 39%, online sales rise 8.3%
Prosecco sales are rocketing at Majestic
A healthy rise in Prosecco and fine wine sales has helped UK retailer Majestic Wine post a slight lift in first-half profits and sales.
The company, which is due to open its 200th store this month, said net profits in the six months to the end of September rose by 8% to GBP7.3m (US$11.8m). Sales in the period were up by 3.3% to GBP130.2m, while operating profits saw a 4% lift to GBP9.6m, the group said today (18 November).
Prosecco sales in the period jumped by 39%, the company flagged, backing up a report earlier this year that suggested consumers are trading down from Champagne.
The company's online sales were up 8.3%. Sales via the internet now represent around 10% of its UK transactions.
Fine wine sales in Majectic's stores are also performing well, it noted, with sales of still wine priced at GBP20 and above up 15.6% to GBP7.4m in the six months.
“Our ongoing investment in new stores, consumer-facing technologies and development of our people have continued to attract considerable numbers of new customers,” chairman Phil Wrigley said. “Majestic has a clear strategy to deliver growth from the expansion of the store estate, increasing revenue from business customers, growing ecommerce transactions and developing sales of fine wine.”
The group's separate fine wine unit, Lay & Wheeler, also saw EBITDA in the period rise by 13.6% to GBP575,000.
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