Virgin Wines UK (LSE:VINO), one of the UK's largest direct-to-consumer online wine retailers, has trimmed its full-year revenue and profit expectations, citing Middle East conflict, higher duty costs and pressure on discretionary consumer spending.
The company now expects revenue of approximately £61 million for the year to 3 July, EBITDA of minus £200,000 and a pre-tax loss of £1.5 million, falling short of market expectations of £63.25 million revenue, £100,000 EBITDA and a pre-tax loss of £1 million.
Trading improved through the year, with first-quarter like-for-like sales down 4.5%, followed by growth of 5% in the second quarter and 8% in the third.
The group has signed a lease for a new Preston warehouse, with build and fit-out expected to complete in the financial year 2027, synergies and structural benefits arising from 2028, and exceptional operating costs of approximately £700,000 alongside increased capital expenditure of approximately £1.6 million.
Virgin Wines will exit its Bolton site by the end of February 2027.
Customer acquisition continued to gain momentum, with the group expecting over 40% year-on-year customer growth for the full year, Warehouse Wines revenue forecast up 90% year-on-year, and commercial partnerships including Moonpig and Ocado delivering double-digit revenue growth.
A new mobile app recorded approximately 13,000 downloads in April and May.
The group said it remains debt free, will fund the new warehouse from existing cash reserves and that WineBank balances are ringfenced and not being used for capital expenditure.
