Virgin Wines, UK’s largest B2C online wine seller, reported a total revenue of £40.6m in H1 2022, just £20,000 more than H1 2021.
The revenue generated from the subscription model of the wine distributors saw an increase of 23% from last year to £26.3m in H1 2022.
The increase in revenue resulted from a 7% subscriber increase to 158,000 during H1 2022 in WineBank and Wine Plan.
The company’s active customer base saw a 9% rise to 185,000 in that period.
The 12 month rolling new customer conversion increased to 56.2% from 51.3% in H1 2021.
The wine company is set out to start BeerSave and SpiritSave subscription schemes in Q2 2022 based on the success of WineBank.
The group aims to generate revenues from their commercial channels with collaborations with big companies in the gifting arena like Moonpig, Virginia Haywood and Arena Flowers.
The company’s EBITDA decreased from £4.5m to £3.7m in H1 2022 from increased operating costs and investments to acquires new clients. Each client acquired cost £13.62 on average.
Pre-tax profit reduced to £3.2m in H1 2022, a loss of £0.2m from H1 2021.
The firm’s net cash increased from £8.4m to £13.6m in H1 2022 is excluding customer deposits from the WineBank subscribers.
Currently, the firm is not paying out an interim dividend.
Jay Wright, Chief Executive Officer, Virgin Wines, said, “as expected, the trading environment has evolved considerably over recent months, and given strong prior year comparatives, we have worked hard to maintain encouraging growth from our core sales channels, whilst maintaining strict discipline around our customer acquisition and our cost control.”
“This result demonstrates the strength of the underlying business model, our discipline in acquiring good quality customers, the reliability of future subscription revenues from a highly engaged customer base and the ability to generate free cashflow as well as our award-winning consumer propositions, the quality of our wines and our outstanding customer service.”
“The second half of the year has started well. We continue to make progress with our strategic initiatives and remain in line with management expectations.”