UK: English wine helps Majestic profits sparkle
UK: English wine helps Majestic profits sparkle
Jun 17, 2013 6(HeraldScotland) - Wine merchant Majestic posted a small rise in profits today after a year in which it said sales of English sparkling wine showed a significant increase.
The retailer, which has plans to grow its 193-strong store estate to around 330 locations in the UK, posted pre-tax profits of £23.7 million for the year to April 1, an increase of £500,000 on a year earlier.
Sales of still wines from the Rhone, Argentina, Italy and Spain showed good growth, while Majestic also reported a big jump in sales of sparkling wine from English vineyards.
Total sales were down 2.1% to £274.4 million in the year, reflecting a cut in its exposure to the wholesale drinks market and last summer's unseasonable weather, which caused the cancellation of a large number of outdoor events.
The number of customers who made purchases in the year still rose by 56,000 on a year earlier to 624,000, while the average spend per transaction remained level at £128. The average bottle price on still wine rose to £7.56.
Chief executive Steve Lewis said: "Majestic is in excellent shape and has made good progress with the four key elements of our future growth strategy - new stores, business customers, ecommerce and fine wine."
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