Online Business Drives Success for Wine Retailer

  • Majestic Wine reports increase in profits and sales
  • Naked Wines’ online business drives growth with 11.3% underlying sales growth
  • New customer acquisition spend of £14m for the year
  • Majestic Retail’s profitability remains flat with 1.9% underlying sales growth
  • £9.8m improvement in Profit Before Tax (PBT) to £8.3m
  • Underlying adjusted PBT up 63% to £17.2m
  • CEO Rowan Gormley expects UK market to remain challenging

Wine retailer and supplier Majestic Wine has reported an increase in profits and sales for the year ended 2 April 2018, with a 2.3% rise in sales. The growth was driven by Naked Wines, its online wine retail business, which saw a 11.3% underlying sales increase. Naked Wines allows customers to fund independent winemakers for access to wholesale prices. Majestic Retail’s profitability remained flat with a 1.9% underlying sales growth. The company also experienced a £9.8m improvement in Profit Before Tax (PBT) at £8.3m and an adjusted underlying PBT up 63% to £17.2m. Despite the challenging UK market, CEO Rowan Gormley remains optimistic about their position.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Majestic Wine’s financial performance and growth in sales and profits, including specific numbers and quotes from the group chief executive. It also explains the factors contributing to this growth, such as Naked Wines’ success and cost-cutting measures.
Noise Level: 3
Noise Justification: The article provides relevant information about Majestic Wine’s financial performance and growth in its online wine retail business, Naked Wines. It also includes quotes from the group chief executive. However, it lacks a broader analysis or context on the wine industry trends or potential risks for the company.
Financial Relevance: Yes
Financial Markets Impacted: Majestic Wine and Naked Wines
Financial Rating Justification: The article discusses the increase in profits and sales of Majestic Wine, an impact on its online wine retail business Naked Wines, and the company’s plans for future operations. This is relevant to financial topics as it involves a company’s performance and potential market impacts.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk