REG - Chapel Down Group - H1 2025 Trading Update

Chapel DownAnnouncement

Thu 07:01

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RNS Number : 2801T  Chapel Down Group PLC  31 July 2025

31 July 2025

Chapel Down Group Plc

('CDG' or 'the Company')

EPIC: CDGP

H1 2025 TRADING UPDATE

Chapel Down, England's leading and largest winemaker, is pleased to report the
delivery of strong growth for the six month period ended 30(th) June 2025
("2025 H1").

Financial highlights

 ●    H1 net ales revenue ("NSR") growth of +11% to £7.9m (2024 H1: £7.1m), in
      line with management expectations:
      ○                                        Off-trade NSR increased +30% to £3.8m. The strong performance in 2025 H1 was
                                               due to increased listings of Rosé, new shopper marketing initiatives and a
                                               more impactful Easter promotional programme. We also lapped a comparative
                                               period in 2024 H1 of softer retailer orders due to higher stockholding
                                               positions, due to a softer trading period over Christmas 2023. Chapel Down
                                               outperformed the wider category and maintained category leadership in English
                                               Sparkling Wine¹.
      ○                                        On-Trade NSR increased by +3% to £1.2m, as our outlet listing universe grew
                                               +15%, however this was balanced by the lapping of significant pipefill of some
                                               major new national account customers in prior year.
      ○                                        International grew +17% to £0.5m as we executed on our new distribution
                                               partnership with Jackson Family Wines in the US, and agreed a new distribution
                                               partnership for Norway.
      ○                                        Direct to Consumer (DTC) declined by -7% to £2.4m, following a number of
                                               shopper conversion initiatives in 2024 which were not repeated, including the
                                               sell-through of the remaining spirits products in H1 2024.

 ●    Net debt increased to £11.3m (2024 FY: £9.2m, 2024 H1: £5.8m), with
      significant headroom on the £20m Revolving Credit Facility (RCF) remaining.
      Movement in net debt reflects:
      ○                                        Increased cultivation costs following new plantings at Boxley Abbey and
                                               Buckwell which will be fully productive in FY26 and FY27 respectively.
      ○                                        Increased inventory as the wines from the 2024 harvest were bottled,
                                               underpinning future growth. Inventory levels remain within internal stock
                                               norms.

 

Operational highlights

 ●    New executive leadership team appointed to lead the business through the next
      phase of profitable growth, with CEO James Pennefather and CFO Louan Mouton
      joining the Company in February and April respectively.
 ●    Onboarding of new distributors in the US (Jackson Family Wines) and Norway
      (Anora Group) has progressed in line with expectations and gives the Company
      confidence in being able to step change Chapel Down's participation in those
      key export markets in the future.
 ●    Successful establishment of the Buckwell vineyard, which consists of 92 acres
      of Chardonnay and 27 acres of Pinot Noir and is expected to enter full
      production in 2027. Chapel Down's total acreage is 1,018, the equivalent of c.
      9% of the UK's planted vineyard acreage(2)
 ●    Traditional Method Sparkling continues to be our core strategic focus, making
      up 70% of the total NSR (2024 H1: 69%).
 ●    The Company received two Golds at the prestigious International Wine Challenge
      (IWC) Awards for Kit's Coty Coeur de Cuvée 2016 and Kit's Coty Blanc de
      Blancs 2019.
 ●    Brand equity measures continued to strengthen during the period, with Brand
      Awareness now at 46% (+4 ppt vs prior year), demonstrating the positive impact
      of sustained investment in Brand marketing(3).

 

Outlook

 ●    Growing conditions in 2025 have been favourable to date, however final yields
      are unpredictable due to the impact that weather conditions can have up to and
      including the harvest period in September/October.
 ●    Whilst the macroeconomic environment in the UK and internationally remains
      uncertain, the Board remains confident in delivering strong sales growth and a
      return to full profitability for the full year. The Off-trade, our largest
      channel, is particularly encouraging with strong underlying sales growth and
      the Board expects H2 2025 to deliver significant growth in this channel in
      comparison to a softer H2 2024 due to the one-off destocking events by
      retailers in the prior year.
 ●    The Board therefore remains confident in achieving market expectations for
      2025 FY.

 

James Pennefather, CEO, commented: "Chapel Down entered 2025 with strong
momentum, and I am delighted that this has continued through the first half of
the year to deliver +11% net sales growth to the end of June. With over 1,000
acres of vines now planted and as the leading brand in English wine, we
continue to invest for future growth and can see significant future potential
both within the UK and in key export markets. Chapel Down's brand awareness is
now at an all time high and the brand is well positioned to benefit from the
positive consumer engagement we are seeing within the category. I would like
to thank all members of the Chapel Down team for the significant progress we
have made in executing against our strategy during H1 to support our ambition
to win an equivalent 1% share of the global Champagne market by 2035."

Note 1: Chapel Down sparkling wine growth was +12% (+15% for Traditional
Method Sparkling wine) compared to English Sparkling Wine category growth of
+10%. Chapel Down remains the market leader in the English Sparkling Wine
category with 35% market share across the Off-trade channel. Source Nielsen
Off-trade consumer retail sales value for 52 w/e 14th June 2025 vs 52 w/e 15th
June 2024.

Note 2: Wine GB Industry Report 2024.

Note 3: BrandVue 12 month rolling to end of June 2025.

Contacts

  Chapel Down Group plc   Chief Executive Officer

 James Pennefather        Chief Financial Officer       01580 763 033

 Louan Mouton

                          Nominated Adviser and Broker

 Singer Capital Markets

 Tom Salvesen                                           020 7496 3000

 Alex Bond

 James Todd

 H/Advisors Maitland

 Sam Cartwright

 Jonathan Cook

 

About Chapel Down:

Chapel Down (AIM: CDGP) is England's leading and largest winemaker and the
power brand of English wine, the world's newest international wine region.
From its home in Kent in the heart of the Garden of England, Chapel Down
produces a range of sparkling and still wines which consistently win
prestigious international awards for their quality. Chapel Down has over 1,000
acres of vineyards, c.9% of the UK's total, of which 750 acres are fully
productive.

Chapel Down's status as the most recognised English wine brand is supported by
its partnerships with flagship sporting and cultural events including Ascot,
The Boat Race and Pub in the Park, and Chapel Down is the 'Official Sparkling
Wine' of the England and Wales Cricket Board.

Chapel Down is listed on the London Stock Exchange's AIM and has over 10,000
retail investors who enjoy discounts on Chapel Down's wines, tours and
tastings at the brand's home at Tenterden in Kent, which each year attracts
c50,000 visitors.

Chapel Down is strongly committed to growing its business in balance with the
environment and sustainability is a strong, ongoing focus. The company is a
founding member of Sustainable Wines of Great Britain and practices
sustainable viticulture.

 

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