**Summary of Virgin Wines UK PLC Interim Results (H1 2026)**
**Financial Highlights**
**Revenue Growth** Increased by 2% year-on-year to £34.7 million (H1 2024: £34.1 million), outperforming the wider online drinks market, which declined by 11%.
**Christmas Trading** Strong performance with a 5% revenue increase over the peak seven-week period to 26 December 2025.
**Balance Sheet** Remains robust with net cash of £10.6 million (H1 2024: £17.3 million) and gross cash of £17.9 million (H1 2024: £23.7 million), while remaining debt-free.
**Shareholder Returns** Returned £2.7 million to shareholders via share buybacks.
**Profitability** Adjusted EBITDA of £259k, with a loss before tax of £356k due to increased investment in growth.
**Strategic Highlights**
1. **Customer Acquisition**
40% year-on-year increase in new customers (75k acquired), with a 12% rise in WineBank membership.
Cost per acquisition remained stable at £15.34 despite significant growth.
2. **Commercial Partnerships**
Revenue from partnerships and corporate gifting grew year-on-year, with the Moonpig partnership delivering double-digit growth.
3. **Mobile App**
Initial phase completed with a soft launch in March 2026, expected to enhance customer engagement.
4. **Warehouse Wines**
Revenue increased by 92% year-on-year, with a 41.1k customer base, demonstrating strong value-led growth.
**Current Trading and Outlook**
January and February 2026 revenue up 12% year-on-year, with full-year revenue in line with market expectations.
Customer acquisition accelerated, with January up 54% and February up 83% year-on-year.
Warehouse Wines revenue grew by 105% in January and February.
Increased near-term investment of £0.55 million in customer acquisition, expected to maintain EBITDA profitability.
Challenges include inflationary pressures, rising duties, and regulatory costs, but the company remains confident in its growth strategy.
**CEO Commentary (Jay Wright)**
Highlighted success in customer acquisition, commercial partnerships, Warehouse Wines growth, and mobile app development.
Emphasized strong momentum, disciplined cost management, and confidence in delivering sustained success despite macroeconomic challenges.
**Financial Review (Amanda Cherry)**
Revenue growth of 2% to £34.7 million, with a loss before tax of £0.4 million due to increased investment.
Gross profit margin decreased to 27.7% due to promotional offers and sales mix changes.
EBITDA of £0.2 millionimpacted by growth investments.
Strong balance sheet with £17.9 million in gross cash and £7.7 million in inventory.
**Conclusion**
Virgin Wines UK PLC demonstrated resilience and growth in a challenging market, with strategic investments in customer acquisition, partnerships, and technology driving performance. Despite short-term profitability pressures, the company remains focused on long-term growth and market outperformance.
| Financial Metric | H1 2026 (£'000) | H1 2025 (£'000) | Change (£'000) | Change (%) |
|---|---|---|---|---|
| Revenue | 34,747 | 34,084 | 663 | 2% |
| Gross Profit | 9,636 | 10,122 | (486) | -5% |
| EBITDA | 259 | 1,600 | (1,341) | -84% |
| Loss Before Tax | (356) | 1,273 | (1,629) | -128% |
| Net Cash | 10,600 | 17,300 | (6,700) | -39% |
| Gross Cash | 17,944 | 23,661 | (5,717) | -24% |
| Inventory | 7,695 | 6,517 | 1,178 | 18% |
| Debt | 0 | 0 | 0 | 0% |
Notes:
- Revenue increased by 2% year-on-year, outperforming the wider online drinks market which declined by 11%.
- Gross profit margin decreased by 2% to 27.7% due to increased promotional offers and changes in sales mix.
- EBITDA and loss before tax were significantly impacted by increased investment in customer acquisition and marketing.
- Net cash and gross cash decreased due to share buybacks, capex, and increased inventory.
- The company remains debt-free.