REG - Gusbourne PLC - Trading Statement

GusbourneAnnouncement

31/01/2024 07:00

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RNS Number : 4427B  Gusbourne PLC  31 January 2024

31 January 2024

Gusbourne Plc

("Gusbourne" or the "Company")

Trading Update

Robust double-digit sales growth delivered in 2023

Gusbourne Plc (AIM: GUS), the premium English sparkling wine producer, is
pleased to report the following unaudited trading update for the 12 months to
31 December 2023 (the "Period"), reflecting growth across all main sales
channels and narrowing EBITDA losses.

Financial highlights

·    UK wine sales growth is expected to be up by c.17% to c.£5.0m
(2022: £4.2m), maintaining strong double-digit sales growth across our direct
to consumer ("DTC") and UK Trade sales channels, in spite of the challenging
macroeconomic environment in the second half of 2023.

·    Total net revenue((1)) for 2023 is expected to be up by c.13% (2022:
49%) to c.£7.1m (2022: £6.2m, 2021: £4.2m, 2020: £2.1m), reflecting
continued robust sales growth across our three main sales channels((3)).

o  DTC wine sales grew by a very pleasing c.26% and overall net revenue,
including Nest our cellar door operations in Kent, grew by c.18% to c.£2.0m
representing c.29% (2022: 27%) of net revenue for the year. The strong growth
was driven by investment in digital marketing and direct wine sales arising
from our tour and experience((2)) programme at the Nest. The Nest increased in
capacity during the Period, resulting in significant DTC revenue growth of
c.31% during the second half of the year. DTC remains our highest gross margin
channel.

o  UK Trade sales grew by c.13% to c.£3.4m, despite more difficult trading
conditions in the second half of the year. UK Trade sales represent c.49%
(2022: 49%) of net revenue. The Company continues to establish new trade
accounts across premium hotels and restaurants and open new business through
the fast growing corporate and partnerships channel.

o  International sales grew by c.7% to c.£1.5m and are expected to account
for c.23% of total net wine sales (2022: 22%). This reflects a strong recovery
in the second half as inventory levels were normalised as expected, as well as
the impact of changeable large orders from overseas distributors which can
distort short term sales trends, and do not necessarily reflect underlying
in-market depletions.

·    Gross margin improved significantly to c.68% (2022: 59%), reflecting
improved price and sales mix dynamics, in line with the Group's premium
positioning and product strategy.

·    Full year adjusted EBITDA loss has narrowed from prior year (2022
£1.1m adjusted loss) and the board are encouraged by the continuing cost
control measures.

·    Net debt at 31(st) December 2023 is expected to be approximately
£17.8m.

·    Completion of successful refinancing of debt arrangements, including
issue of new £20m long-term secured deep discount bond, providing additional
funding for future growth.

 

 

 

Operational highlights

·    Gusbourne remains one of the most globally recognised English
sparkling wine producers, with distribution in over 35 international markets.

·    Capacity expansion at the Nest, following renovation work, increased
capacity by 35% for our tour and experience programme.

·    Launch of several new products, including the critically acclaimed
second vintage of Fifty One Degrees North, our repackaged still English Rosé
and two new membership schemes.

·    Excellent quality and yield from the 2023 harvest.

·    During 2023, the Company received a record number of awards for its
wines, winning more gold medals and trophies than ever before. Highlights
include:

-     Four trophies, including retaining Estate Winery of the Year at the
Wine GB awards

-     Collecting the Vintage English Sparkling Wine Trophy at this year's
International Wine Challenge, along with eleven other medals

-     Thirteen medals, including two golds, at the Decanter World Wine
Award

-     Five gold medals at the Champagne and Sparkling Wine World
Championships

-     Blanc de Noirs and Blanc de Blancs of the Year in the England 2022
Special Report

-     Two Editor's Choice listings in Wine Enthusiast and four wines
scoring over 94 points

-     A Judges' Selection and Platinum award at the Texsom Awards in the
USA

 

Jonathan White, Gusbourne's CEO commented:

"2023 has seen the Group make further progress against our growth strategy as
we continue to strengthen Gusbourne' s position as the one of the UK's most
significant fine wine producers. These results have been achieved against a
difficult macroeconomic environment, which ultimately resulted in more
challenging trading conditions for the luxury goods sector in the second half
of the year.

"Despite this backdrop we have continued to see significant consumer demand
for Gusbourne's wines with robust growth across all three of our sales
channels, underpinned by the careful and continued investment in the brand and
the commitment and dedication of our talented team."

((1)) Net revenue is revenue reported by the Company after excise duties
payable

((2)) Experiences includes guests who visit our Cellar Door, The Nest, for a
vineyard tour and wine tasting experience, as well as sales of experience gift
vouchers.

((3)) In addition, £0.1m Other Revenue

For further information contact:

Enquiries

 Gusbourne Plc
 Jonathan White, CEO                                        +44 (0)12 3375 8666

 Katharine Berry, CFO & COO
 Phil Clark, Investor Relations
 Panmure Gordon (UK) Limited (Nomad and Sole Broker)
 James Sinclair-Ford / Ailsa Macmaster                      +44 (0)20 7886 2500
 Hugh Rich / Rauf Munir
 Media:
 Houston                                                    +44 (0)20 4529 0549

 Kate Hoare / Ben Robinson / India Spencer

 gusbourne@houston.co.uk (mailto:gusbourne@houston.co.uk)

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain. The person responsible for arranging for the release of this
announcement on behalf of the Company is Katharine Berry, Chief Financial
Officer.

Gusbourne plc (https://www.gusbourne.com/investors) (AIM:GUS) is a premium
English sparkling and fine wine producer, specialising in the production and
distribution of award winning wines, produced from grapes grown across its
vineyards in Kent and West Sussex.

Since the Group planted its first vines in 2004, it has had a clear vision and
single goal: to create English Still and Sparkling Wines that would stand up
alongside the very finest offerings from across the globe.

From these humble beginnings, Gusbourne has focussed on building long-term
assets to drive value creation for all stakeholders. Today, the Group is an
acknowledged leader in the rapidly expanding English wine industry, achieving
international brand recognition across its product range.

Drawing on an estate of over 93 hectares of mature vineyards with additional
new land available to scale further, the Gusbourne cellar continues to mature
with ever expanding fine wine stocks becoming available to service the growing
demands of the Group's increasingly international customer base.

Gusbourne's luxury brand enjoys premium price positioning and is distributed
in the finest establishments both in the UK and overseas including premium
hotels and restaurants, independent wine merchants, and high-end stockists and
retailers. The Group also continues to invest in building strong relationships
with its growing and loyal direct customer base, including through its
immersive brand experience at its cellar door experiences, the Nest in Kent.

 

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