Virgin Wines UK has reported a small increase in total revenue for the first half of its fiscal year, defying the challenges of a subdued consumer economic landscape. The online wine retailer, listed on the London Stock Exchange, stated that revenue for the six months ending September 29th reached £34.3 million ($43.6 million), up from £33.6 million the previous year. Sales to repeat customers increased by approximately 5%, and commercial revenue rose by 6.5%.
The company attributed this growth to its focus on attracting high-quality customers, which resulted in a 22% rise in new customer conversion rates. Furthermore, Virgin Wines saw a 14% decrease in the fully-costed cost per acquisition.
Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding share-based payments, stood at £1.75 million for the period, compared to £800,000 last year. This increase was driven by both revenue growth and effective cost management.
Despite the positive performance, Chief Executive Jay Wright remains cautious about the challenging consumer landscape. However, he expresses confidence in the company’s business model and looks forward to the future.
Written by Anthony O. Goriainoff
