Last checked at 7 Jan 2016 07:00
For Immediate Release 7 January 2016
Majestic Wine PLC
("Majestic" or the "Company")
Christmas Trading Statement
12% pro-forma sales growth supports three year transformation plan
Majestic Wine PLC, the UK's largest wine specialist and owner of Naked Wines, today announces a trading update for the 10 weeks of Christmas Trading from 27 October 2015 to 4 January 2016 ("the Period"). The Company delivers c.30% of total sales during the Period.
Total sales growth was 42.6% compared to the same period last year, boosted by the acquisition of Naked Wines. On a pro forma basis1 over the Period Group sales were up 12.2% (based on constant foreign exchange rates, excluding movement in en primeur sales). Further detail is provided in the table below.
Majestic Retail like for like sales grew 7.3% in the Period (versus decline of 1.7% in comparator period), supported by the previously indicated strategic investments to reinvigorate sales growth with a new and simplified pricing policy and improved customer experience in store and on-line. As expected these investments resulted in higher costs and a slightly lower percentage gross margin during the period.
Summary pro forma performance for the 10 week period from 27 October 2015 to 4 January 2016:
Division | Sales |
| % YoY |
Majestic Retail | +7.5% |
Majestic Retail LfL | +7.3% |
Majestic Commercial | +10.2% |
Naked Wines | +28.9% |
Lay & Wheeler | -3.5% |
Group Total | +12.2% |
Rowan Gormley, Chief Executive, commented:
"This is an encouraging result. Majestic Commercial and Naked Wines continued to grow strongly, and I am particularly heartened to see the Majestic Retail business grow as the impact of our better pricing, better service and better looking stores starts to take effect. However there is still much to do. We are only three months into our three year plan and although this performance is pleasing it is too early to call it a trend.
I take my hat off to the 1000+ people we have, from Aberdeen to Sydney, who worked flat out during the festive season and deserve a large glass of wine. The teams have embraced our changes and worked exceptionally hard to deliver a better experience for our customers.
We remain focused on our values of looking after our brilliant teams and suppliers and thank them for their support during the initial steps of transforming Majestic into a truly fantastic business."
Notes:
1. As a result of the acquisition of Naked Wines in April 2015, in order to aid comparability, the pro forma performance assumes Naked Wines was owned throughout comparative period in the prior year.
For further information, please contact:
Majestic Wine PLC | Tel: 01923 298200 |
Rowan Gormley, CEO James Crawford, CFO |
|
Buchanan | Tel: 020 7466 5000 |
Charles Ryland Gabriella Clinkard Robbie Ceiriog-Hughes | majesticwine@buchanan.uk.com |
Investec | Tel: 020 7597 5970 |
Garry Levin Carlton Nelson David Flin
|
|
About Majestic Wine PLC:
Majestic Wine PLC is the UK's largest wine specialist, with four divisions:
Division: | Majestic Retail | Naked Wines | Majestic Commercial | Lay and Wheeler |
Business Description: | UK's largest specialist wine retailer, with 214 branches in the UK and 2 in France | Crowdfunding platform for independent winemakers, with operations in UK, USA and Australia | Specialist on-trade supplier | Specialist fine wine merchant |
Sales for the year to March 2015: | £231m | £81m | £42m | £10m |
In April 2015 Majestic Wine acquired Naked Wines, and appointed Rowan Gormley, founder and CEO of Naked Wines to CEO of the enlarged Group.
In June 2015 Rowan Gormley launched a three year transformation plan, designed to deliver sustainable long term growth in shareholder value by:
- Earning customers loyalty
- Strong competitive offers and unrivalled personal service
- Focusing on hiring and retaining expert people