Majestic Wine hails sales boost as transformation plan bears fruit
Majestic Wine is toasting a spike in sales for the full year after the firm was boosted by its takeover of online rival Naked Wines.
Revenues rose 41.3% to £402.1 million as the firm said its "transformation" plan under new chief executive in Rowan Gormley was beginning to pay off.
Sales at Naked broke through the £100 million barrier and Majestic notched up its first rise in like-for-like sales in four years, coming in at 4.8%.
However, pre-tax profits fell from £18.4 million to £4.7 million as the £70 million takeover and investment costs took their toll on the balance sheet.
Mr Gormley said: "Early signs are that the plan is starting to work. Strong sales figures reflect the hard work being done on the ground by the whole team. At Naked Wines, we had a belter of a year - breaking through the £100 million sales barrier and delivering a maiden profit."
He added that trading conditions "remain tough" at the company's 210 UK outlets but it is still aiming for £500 million of sales by 2019.
"We still have lots to do and, although we are on course to deliver our three-year plan, it won't be without challenges," Mr Gormley said.