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(Alliance News) - Gusbourne PLC on Wednesday reported an improved annual loss as it boasted "significant" consumer demand for its wines.
The English sparkling wine producer posted a pretax loss of GBP2.6 million in 2022, narrowed from GBP3.6 million in 2021, as net revenue rose by 49% to GBP6.2 million from GBP4.2 million.
The Ashford, England-based firm said it saw strong growth across its three main distribution channels: UK Trade, Direct-to-Consumer, and International. UK Trades sales rose 53% year-on-year to GBP3.1 million and Direct-to-Consumer net revenue grew by 29%. International sales were up 78% against the year prior.
However, the company also reported significantly higher expenses in 2022. Cost of sales jumped 38% to GBP2.5 million from GBP1.8 million, while sales and marketing expenses increased by 41% to GBP3.5 million from GBP2.5 million. Administration expenses were held steady at GBP1.3 million.
"Despite a challenging macro-environmental backdrop, we have continued to see significant consumer demand for Gusbourne wines, reflecting the luxury status of the Gusbourne brand and the underlying growth of the dynamic English wine sector," said Charlie Holland, chief executive.
"We have seen strong revenue growth across all our sales channels, both in the UK and internationally, as the quality of Gusbourne's wines continue to gain praise and critical recognition, further cementing our excellent reputation. At the same time, price/mix was a positive driver of our gross margin."
Gusbourne's gross profit margin improved to 59.2% in 2022 from 55.9% the year prior. The company said this was due to an improvement in its distribution channel and its pricing mix.
"With these strong results, a fantastic harvest in 2022, the purchase of new land during the year and healthy inventory levels in our cellars, the board continues to look to the future with great confidence as we further strengthen our position as one of the UK's most significant fine wine producers," the CEO added.
Shares in Gusbourne were up 2.9% at 70.0 pence on Wednesday morning in London. The stock is up 9.4% over the past 12 months.
By Heather Rydings, Alliance News senior economics reporter
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