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Majestic Wine Interim Results

Published 18 November 2014

Majestic Wine PLC ("Majestic"), the UK's largest wine specialist with 210 stores, today announces its unaudited interim results for the 26 weeks ended 29 September 2014.

Financial Highlights

Total group sales up 2.8% to £133.8m (2013: £130.2m)
Increased market share by 0.1% to 4.3%
Like for like sales in UK retail stores up 2.8%
Group Profit before tax declined to £8.5m (2013: £9.5m)
Majestic Wine profit before interest and tax declined to £7.7m (2013: £8.4m) due to previously announced investments in infrastructure, technology and consumer insights to support future growth
Lay & Wheeler profit before interest and tax declined to £127k (2013: £575k) due to poor trading around the weaker Bordeaux 2013 vintage
Majestic Wine Calais profit before interest and tax increased to £738k (2013: £660k)
Interim dividend in line with last year at 4.2p net per share

Operational Highlights

Customer key metrics
Active customers up 1.9% to 643,000 (2013: 631,000)
Average spend per transaction is £130 (2013: £127)
Average bottle of still wine purchased at Majestic £8.02 (2013: £7.71)
Market share gains supported by significant increase in sales of Picpoul from France, up 127%, Malbec from Argentina, up 41% and Rosé from Provence, up 32%
Progress with key growth initiatives
Online sales increased 12.3% to £12.9m, now representing 10.8% of UK retail sales (2013: 10.3%)
Sales to business customers up 4.9% to £26.8m (2013: £25.6m)
Sales of fine wine (priced at £20 per bottle and above) increased by 22.0% to £9.0m (2013: £7.4m)
Four new stores opened during the half (2013: 3)

New Developments

Distribution centre successfully relocated in July 2014 to a larger and more modern facility
Moved to a new central support office following the end of the lease term on our previous facility
Completed an in-depth analysis of the market and our own extensive customer data. Now introducing new, better targeted customer communications
Expanded the Commercial sales team to capitalise on the significant growth opportunities from sales to business customers
New craft spirits range launched for Christmas 2014

Commenting on the results Steve Lewis, Chief Executive, said:

"Majestic has a compelling proposition with a differentiated model, strong customer service ethos and a clear strategy to deliver growth. The 2015 financial year is one of investing to put in place the building blocks to deliver future growth and shareholder value and we are progressing to plan."

Source: Company Press Release