Chapel Down records £2m profit as English wine booms
Wine producer Chapel Down has posted a profit of £1.93m in 2021, thanks to the “thriving” English wine market, according to CEO Andrew Carter.
“We delivered a strong performance with increased revenues, margin expansion, growth across all trading channels and a full year adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation] profit of £1.93m,” Carter said.
Following the sale of its beer and cider business, Chapel Down has pivoted its focus to being “the number one winemaker in the UK”, Carter added.
“Our Wine and Spirits business enjoyed record revenues and sold over 1.5m bottles – our largest number ever. This excellent performance results from our brand leadership position in an exciting and growing market.”
The firm reported a group adjusted EBITDA of a £1.93m profit in results for the year to 31 December 2021, after a previous £0.02m loss in 2020.
Profits have been spurred on by the rise of English wine. The brand’s wine sales volumes increased 17%, with sparkling volumes up more than double that, at 39%.
Chapel Down’s wines and spirits gross profit increased 37% to £7.05m, with revenues up 25% on the previous year to £16.64m.
Carter noted that the brand’s long term goal is to double the size of the business in the next five years.
He took up the role of CEO in 2021 after long time chief executive Frazer Thompson stepped down in September.
The company said that Thompson had decided to retire after two decades of building the English sparkling wine producer into one of the UK’s largest domestic wine businesses.
Martin Glenn, Chapel Down chairman, said: “Investment continues to increase and at the start of 2022 the industry attracted more foreign interest with Henkell Freixenet buying the Bolney vineyard in Kent. This is great news for the English Wine category and as clear market leader Chapel Down will benefit from a rising tide of investment into the world’s newest and most sensational wine region.”