REG - Chapel Down Group - Unaudited Trading Statement period ended 31/12/25

Chapel DownAnnouncement

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RNS Number : 8093Q  Chapel Down Group PLC  29 January 2026

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

 

29 January 2026

Chapel Down Group plc

('CDG' or 'the Company') EPIC:CDGP

 

UNAUDITED TRADING STATEMENT FOR THE PERIOD ENDED 31 DECEMBER 2025

 

Strong double digit growth in Net Sales Revenue and Adjusted EBITDA ahead of
expectations

 

Chapel Down, England's leading and largest winemaker, is pleased to provide an
unaudited trading update for the year ended 31 December 2025 (FY25).

 

As a result of strong Christmas trading, Net Sales Revenue (NSR) is expected
to be slightly ahead of guidance(1) at £19.4m.

 

Furthermore, the Board now expects Adjusted EBITDA to be in the range of
£4.0m - £4.5m, ahead of market expectations. This is primarily driven by an
improvement in underlying profitability, whilst the Fair Value adjustment to
Biological Produce is also expected to be slightly higher than market
expectations, supported by a high quality and above-average harvest yield.

 

The Group expects to report:

 

 £'000                                  FY25    FY24    Change %
 Net Sales Revenue by Channel

 Off-trade                              9,371   6,790   +38%
 On-trade                               2,575   2,460   +5%
 International                          1,018   684     +49%
 Ecommerce                              3,860   3,755   +3%
 Retail, Tours & Events                 2,216   2,241   -1%
 Other Sales and Income                 403     421     -4%
 Total Net Sales Revenue                19,443  16,351  19%
 Of which Direct-to-Consumer            6,404   6,331   +1%

 Net Sales Revenue by Product Category

 Traditional Method Sparkling wine      13,557  10,582  +28%
 Still and other wines                  4,739   4,460   +6%
 Total Net Sales Revenue (Wine)         18,296  15,042  +22%
 Non-wine sales                         1,147   1,309   -12%
 Total Net Sales Revenue                19,443  16,351  +19%

 

Financial Highlights

 ·                 Chapel Down dispatched over 1m bottles in the year of Traditional Method
                   Sparkling wines (TMS) for the first time, a key milestone as the Company
                   delivers on its ambition to win an equivalent 1% share of the global Champagne
                   market by 2035(2).
 ·                 Net Sales Revenue ("NSR") up 19% to £19.4m for the year (FY24: £16.4m),
                   slightly ahead of guidance, with wine-related sales growth of +22%.
 ·                 Chapel Down delivered sales growth in Off-trade (+38%), On-trade (+5%),
                   International (+49%) and Ecommerce (+3%). Outperformance in the International
                   channel was due to a new distribution agreement with Jackson Family Wines for
                   the important US market; and in the UK Off-Trade channel due to new listings
                   and well-executed promotional campaigns, as well as lapping a period of
                   retailer destocking in FY24.
 ·                 Chapel Down extended its clear leadership in a category which continues to
                   grow strongly. Chapel Down now has 36% market share of the UK off-trade (FY24:
                   35%), and delivered Retail Sales Value growth of +16%, which was higher than
                   the English Sparkling Wine category growth of +12%(3).
 ·                 The Company recorded net debt of £12.4m (FY24: £9.2m) due to costs of
                   cultivation of 118 acres of new vines planted since 2023; and increasing
                   maturing stock levels due to the above-average yield of the high quality 2025
                   harvest, both of which underpin future growth. Significant headroom on its
                   £20m revolving credit facility remains, with an accordion option to extend
                   the facility to £30m.

 

Operational Highlights

 ·                 2025 harvest delivered an above-average yield of high quality, meaning the
                   Fair Value Adjustment to Biological Produce is expected to be slightly ahead
                   of guidance.
 ·                 Targeted marketing expenditure delivered significant growth in key brand
                   metrics, with Awareness now at 49% (FY24: 42%), underpinning Chapel Down's
                   position as the lighthouse brand in English wine(4).
 ·                 Further progress made on the Company's premiumisation strategy, with
                   Traditional Method Sparkling wines now representing 74% of wine-related NSR
                   (FY24: 70%).

 

Current Trading & Outlook

Chapel Down experienced strong momentum at the end of FY25, which the Board
expects to continue into FY26. The Board remains confident in the Group's
significant long-term growth potential, underpinned by a clear strategic focus
on brand value enhancement, sustainable channel expansion and disciplined
capital management.

To build further on brand momentum in FY25, the Board has taken the decision
to slightly increase marketing investment on proven growth drivers in FY26,
whilst maintaining a disciplined approach to profitable growth. It is expected
these initiatives will strengthen the brand, capture further market share and
reinforce gross margin.

Disciplined and targeted capital allocation in prior years leaves the business
well positioned for future growth. The Board will consider any requirements
for additional capex if it would deliver sustained benefits and shareholder
value through either increased revenue or structural production efficiencies.

 

James Pennefather, Chapel Down CEO, commented: "2025 performance reflects
strong delivery across the Chapel Down business. In addition to exceptional
topline growth of 19%, increased brand and category leadership and the
delivery of a world class harvest, Chapel Down has made significant progress
towards its goal to deliver sustained profitable growth in the medium-term.

 

In spite of continued economic pressures, consumers are continuing to find
reasons to celebrate, with over one million bottles of Chapel Down Traditional
Method Sparkling wines dispatched for the first time during 2025. We are
seeing a generational shift into English Sparkling Wine as Millennials, who
prefer a lighter, fresher, crisper style of wines, are increasingly adopting
the category.  Consumers are now choosing Chapel Down throughout the year and
for a broader range of celebration occasions than other high value sparkling
wines, which gives us a significant opportunity for future sustained topline
growth. In order to further capitalise on this trend, the Board has taken the
decision to slightly increase marketing investment in FY26 to build brand
value, underpin premiumisation and deliver long term growth.

I would like to thank all members of our fantastic team and our partners for
the significant contribution they are making to Chapel Down's progress. The
Board's confidence in the future growth of both Chapel Down and English wine
is as strong as ever."

Notes

1Immediately before publication of this announcement, the Board of Chapel Down
believes that market expectations for the year ended 31 December 2025 were for
revenues of £19.0m and Adj. EBITDA of £3.5m.

2 In 2025, 266m bottles of Champagne were shipped (Comité Champagne :
Champagne: 2025 shipment review and outlook. 17 Jan 2026).

3 Source: NIQ (previously "NielsenIQ") UK Sparkling Wines - 52 w/e 27th
December 2025 vs 52 w/e 28th December 2024.

4 Source: Savanta, BrandVue, Sparkling Wine drinkers, MAT end December 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                                  020 7496 3000

 Alex Bond

 James Todd

 H/Advisors Maitland

 Sam Cartwright                                         020 7379 5151

 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 777 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
and The Boat Race, 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
c.50,000 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 practises
sustainable viticulture.

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