Virgin Wines revenues remain stable as it ‘builds momentum’
Virgin Wines saw flat revenues in the 12 months to 30 June 2025 and although profit before tax and EBITDA were down slightly, these remained ahead of expectations it said, as it continues to build momentum.
This morning the online wine retailer reported revenues of £59m – the same as the previous 12-month period, which it said were positive given the headwinds across the sector, both in terms of consumer spending as well as the revised banding, EPR and increased national insurance.
EBITDA was reported as £2.3m, slightly down on last year’s £2.8m, with profit before tax coming in at £1.6m, down from last year’s £1.9m on the back of continued investment. however this was still ahead of market expectations by over 4.5% and 23.1% respectively, it said.
Gross product margin decreased from 37.6% to 35.6%, it noted “following an unprecedented rise in alcohol duty alongside the introduction of a new sustainability tax (EPR) and the associated significant increase in cost of goods” – but these were largely mitigated on the back of cost control and the reduction in marketing costs of 13% and a operating costs of 6%.
It also said it had made strong market share gains against a challenging environment, with its stable revenues set against a backdrop of overall falling online sales. Recent data from IMRG3 for example reported online sales of beers, wines and spirits fell 9.7% fall between July 2024 and June 2025.
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Chief executive officer Jay Wright said the company had made “excellent progress” across all of the company’s key growth drivers in its 25th anniversary year.
“Both EBITDA and PBT were ahead of market expectations, and we have seen impressive growth in both our Commercial channel and our value proposition, Warehouse Wines, two key elements of the growth strategy which we set out in March,” he said.
Other boosts came from increased levels of loyalty from customers on its key WineBank subscription scheme – which saw membership growth of 1.5% and an annual cancellation rate of just 14.7%, whilst marketing and operational costs have reduced “substantially” year on-year despite the inflationary environment. Meanwhile its commercial sales rose 24% year-on-year, partially driven by its expanded relationships with personalised gifting website Moonpig and Ocado.
“In a highly competitive sector, we have been delighted to see healthy market share gains with customers continuing to rate highly our exclusive portfolio of wines, and our outstanding levels of service,” he concluded.
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