REG - Virgin Wines UK PLC - Trading Update

Virgin Wines UKAnnouncement

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RNS Number : 4288Q  Virgin Wines UK PLC  27 January 2026

27 January 2026

("Virgin Wines", the "Company" or the "Group")

Trading Update

Strong Christmas trading delivers 5% increase in revenue year-on-year, a 40%
increase in customers acquired and growth across all strategic pillars

Virgin Wines UK plc (AIM: VINO), one of the UK's largest direct-to-consumer
online wine retailers, is pleased to announce its Christmas trading update and
an update for the six months ended 2 January 2026 (the "Period").

Strong Christmas Trading

The Company delivered a strong Christmas trading period, with revenue over the
seven weeks to 26 December 2025 up 5% year-on-year, with a 40% increase in
customers acquired and the customer base returning to growth.

H1 Overview

The implementation of the Group's growth strategy is gaining momentum, with
revenue during the Period rising by 2% year-on-year to £34.7m (H1 2024:
£34.1m), significantly outperforming the wider online drinks market which
declined by 11%(1), evidencing significant market share gains.

Virgin Wines continues to deliver a positive performance across all pillars of
its growth strategy:

1)   Increased customer acquisition

40% increase in customers acquired year-on-year across the Group, whilst
maintaining cost per acquisition at broadly the same unit cost as the previous
year, highlighting the disciplined approach to investment.

2)   Drive growth in the Commercial channel

Revenue generated through Commercial partnerships and corporate gifting showed
year-on-year growth and was ahead of expectations at the half year, with the
Moonpig partnership continuing to deliver double digit growth.

3)   Utilise technology to enhance customer engagement

Encouraging progress in the development of the mobile app, which remains on
track for release during this quarter.

4)   Investment in Warehouse Wines

Warehouse Wines continues to deliver significant growth, with revenue
increasing by 92% year-on-year.

The Company remains debt free and the balance sheet remains strong, with gross
cash of £17.9m (H1 2024: £23.7m), ringfenced customer WineBank deposits of
£7.3m (H1 2024: £6.4m) and net cash of £10.6m (H1 2024: £17.3m) as at 2
January 2026. This balance sheet strength has been maintained alongside the
return of over £2.7m to shareholders by way of share buybacks, investing in
the growth strategy and increasing inventory to protect against the imminent
duty rise at the end of January.

Outlook

The Board is encouraged by the progress made against the four key pillars of
the growth strategy and remains confident that the FY26 outturn will be in
line with current market expectations.

The Company continues to deliver year-on-year growth across its KPIs, against
what continues to be a challenging consumer market, reflecting the early
success of the growth strategy. The significant increase in customer
acquisition positions the Company well for future growth, supported by the
sustained growth of Warehouse Wines and a strong pipeline of opportunities for
further expansion of the Commercial channel. Despite inflationary pressures,
duty increases and a challenging consumer landscape, the Company's resilient
model, loyal customer base and exciting medium-term strategy provide a strong
foundation to deliver meaningful growth. The Board is continually evaluating
opportunities to capitalise on the current sales momentum and are open to
accelerating this growth if the right opportunities arise.

Jay Wright, Chief Executive Officer of Virgin Wines, commented:

"We are delighted to report a positive first-half performance in which we have
delivered meaningful market share gains enabled by our growth strategy. It was
particularly encouraging to see 5% year-on-year growth over the key Christmas
trading period, driven by a 40% increase in customer acquisition, the
continued growth of our Commercial channel and a 92% increase in revenue
year-on-year from our Warehouse Wines brand.

With a strong balance sheet, agile sourcing model, a loyal customer base, and
the imminent launch of our mobile app which we believe will drive further
customer engagement, we remain confident in a full-year performance in-line
with our growth expectations."

 

(1) Source: IMRG Online Retail Sales Tracker December '25

 

- Ends -

Enquiries:

 Virgin Wines UK plc                                            Via Hudson Sandler

 Jay Wright, CEO

 Amanda Cherry, CFO

 Cavendish

 (Nominated Adviser and Sole Broker)

 Matt Goode, Seamus Fricker, Elysia Bough (Corporate Finance)

 Matt Lewis (Corporate Broking)

 Hudson Sandler

 (Public Relations)

 Dan de Belder

 Harry Griffiths

 Jackson Redley

                                                                Tel: +44 20 7220 0500

                                                                virginwines@hudsonsandler.com (mailto:virginwines@hudsonsandler.com)

                                                                Tel: +44 20 7796 4133

 

Notes to editors:

About Virgin Wines

Virgin Wines is one of the UK's largest direct-to-consumer online wine
retailers. It is an award-winning business which has a reputation for
supplying and curating high quality products, excellent levels of customer
service and innovative ways of retailing.

The Company was established in 2000 by the Virgin Group and was subsequently
acquired by Direct Wines in 2005 before being bought out by the Virgin
Wines management team, led by CEO Jay Wright and former CFO Graeme Weir,
in 2013. It listed on the London Stock Exchange's Alternative Investment
Market (AIM) in 2021.Virgin Wines is headquartered in Norwich, with two
fully bonded national distribution centres in Preston and Bolton. It stocks
over 650 wines sourced from more than 40 trusted winemaking partners and
suppliers around the world which it sells to a large active customer base of
over 140k, the majority of whom are on one of the Group's subscription
schemes.

The Company drives the majority of its revenue through its WineBank
proposition, using a variety of marketing channels, as well as through its 30
strong Wine Advisor team, Discovery Club subscription programme and Pay As You
Go service.

The Company also has a fast-growing Commercial division, as well as having
recently launched Warehouse Wines, its DTC value proposition in 2024.

Along with its extensive range of award-winning products, Virgin Wines was
delighted that its flagship WineBank service was awarded 'Wine Club of the
Year' at the 2024 IWC Awards, as well as being voted by UK consumers as Online
Retailer of the Year for 2025 at the People's Choice Awards. In addition, in
2023 the Group's Buying Director, Sophie Lord, was named Buyer of the Year
by Decanter magazine.

https://www.virginwinesplc.co.uk/ (https://www.virginwinesplc.co.uk/)

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