Shares in the English sparkling winemaker Chapel Down shot up today (29 January) as the group announced an improved outlook for fiscal 2025 revenue and profit.
In an unaudited trading statement for 2025, the group said it expects to report net sales of £19.4m ($26.8m). That is above the market's £19m forecast and would mark a 19% increase over 2024, Chapel Down said.
It also flagged an adjusted EBITDA print of £4-4.5m, which, it added, would beat market expectations of £3.5m.
In 2024, Chapel Down booked £2.42m in adjusted EBITDA, a 58% decline on the previous year.
Commenting on its outlook for the new year, the group said it expects the "strong momentum" from 2025 to carry over.
Chapel Down's shares were up 6% at 36.55 pence as of 13:20 GMT in London today.
The group also said it planned to boost spend on marketing for "proven growth drivers in FY26".
"It is expected these initiatives will strengthen the brand, capture further market share and reinforce gross margin," the Kent-based sparkling wine business said.
Commenting on future capex, Chapel Down said its board would review requirements for further investment "if it would deliver sustained benefits and shareholder value through either increased revenue or structural production efficiencies".
Reflecting on the group's performance, James Pennefather, the CEO of Chapel Down, said the company "has made significant progress towards its goal to deliver sustained profitable growth in the medium term".
He added: "In spite of continued economic pressures, consumers are continuing to find reasons to celebrate, with over one million bottles of Chapel Down traditional method sparkling wines dispatched for the first time during 2025.
"We are seeing a generational shift into English sparkling wine as millennials, who prefer a lighter, fresher, crisper style of wines, are increasingly adopting the category.
"Consumers are now choosing Chapel Down throughout the year and for a broader range of celebration occasions than other high-value sparkling wines, which gives us a significant opportunity for future sustained topline growth."
Pennefather, a former Diageo executive, took the helm at the UK wine business almost a year ago. He replaced Andrew Carter, who resigned in September 2024 after three years leading the group, to join UK brewer Timothy Taylor & Co. the following year.
