Majestic Wine sees profit fall by 22.5%

Majestic Wine has announced its full year results for the 52 weeks ended 30 March 2015, showing a pre-tax profit fall of 22.5% to £18.4m.

Revenue for the group was up 2.3% to £284.5m (2014: £278.2m), and like-for-like sales in UK retail stores grew by 1.9% (2014: -0.1%).

The number of customers who made purchases during the year was up 5.4% to 678,000 (2014: 643,000). The average spend per transaction remained unchanged at £129 (2014: £129). The average price per bottle of still wine purchased increased to £8.00 (2014: £7.94)

Online sales increased 12.4% to £31.1m (2014: £27.7m), now representing 12.1% of UK retail sales (2014: 11.4%).

Majestic Wine opened seven new stores during the year (2014: 12).

The group acquired Naked Wines in April and its founder, Rowan Gormley, was appointed as Majestic Group CEO. Trading for both Naked Wines and Majestic Wine in the first two months of the current financial year have been in-line with management expectations.

Rowan Gormley said, 'I have only been Group Chief Executive for ten weeks but it is clear to me that the enlarged Majestic Group has excellent future prospects. Majestic Wine has many unique competitive advantages, especially its incredible staff. When combined with Naked Wine's digital strengths, and both businesses ability to source exclusive and exciting wines for their customers, we are uniquely placed to build a fast growing international leading wine specialist.'

'Whilst my review of the business is ongoing it is obvious that we need to make investments to reinvigorate Majestic Wine. These investments will initially suppress profit in the short term but I am confident we can rebuild momentum in this excellent business. At the same time we aim to maintain the international growth trajectory of Naked Wine and crystallise the benefits of having the two businesses in the same Group. I am confident that we will create significant value for our shareholders over the medium term.'