Majestic Wine profits soar by £6.7m in first half

Majestic has posted a pre-tax rise in profits of £6.7 million for the first half of this year to £6.8m, having reported profits of just £51,000 in the same period last year.

Group chief executive of Majestic Wine, Rowan Gormley

Announcing its half year results this morning, Majestic reported profits before tax of £6.8m in the 26 weeks ended 2 October, having barely broken even this time last year.

Revenues rose by 5.7% to £217.4m, which the retailer said puts it on track to hit its £500m sales target by 2019.

Off the back of its positive turnaround, the company hikes its dividend by 33.3% to 2p per share, with shares rising by more than eight per cent on this morning.

“The plan is on track,” stated Rowan Gormley, group chief executive. “Two years in and profits are growing, our foundation is solid and we are ready to accelerate growth. We have the opportunities to invest in new customers and a team excited to focus on what they do best. It’s time to put our foot on the gas.

“In this half, Naked Wines has demonstrated the quality of its model, people and management, by achieving profitability in all three geographical markets. It has become a disciplined business committed to continuous improvement.”

Earlier this year the company rolled out its “franchise-lite” model with the aim of giving staff and store managers more incentives and a greater stake in the success of their store.

Under the plans, the managers of Majestic Wine branches will get the chance to become partners, giving them greater control over the day-to-day running of stores. Majestic has said the programme with reach around half of its 210 branches over the next year.

“The focus on empowering our wonderful store teams in Majestic Retail has finally borne fruit, with improved staff engagement flowing through into improved customer engagement, which means improved loyalty and retention,” added Gormley. “The team have worked like demons and I am dead proud of every one of them.”

Majestic Wines, which owns Naked Wines, currently has 210 wine warehouses across Britain as well as two branches in France.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Customer Service & Operations Administrator

Marussia Beverages UK Ltd
London, UK

Marketing Director

Fishers Gin
London, UK

Sales Account Manager

Berkmann Wine Cellars
London, UK

Sales and Brand Manager

The Duchess Virgin Gin & Tonic
London, UK

Brands Sales Executive

Woolf Sung Ltd
London, UK

International Logistic Manager

Wine Source
London, UK

Sales Scotland

Liberty Wines
Scotland, UK

Sales Manager

Stilnovisti
London, UK

Prosecco Springs

London,United Kingdom
26th Apr 2018

Spirits & More

Rome,Italy
19th May 2018

db Awards 2018

London,UK
23rd May 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more