Majestic Wine PLC Preliminary Results

Majestic Wine PLC (“Majestic”), the UK’s largest wine warehouse chain, today announces its preliminary results for the 52 weeks ended 29 March 2010.

Download the full statement (PDF format)

Highlights

Financial

  • Profit before tax increased by 117% to £16.0m (2009: £7.4m).
  • Underlying profit growth of 26% after adjusting for last year’s £5.3m reduction in the carrying value of our French business.
  • Total sales up 15.6% to £233.2m (2009: £201.8m), now including £12.4m from Lay & Wheeler, the fine wine specialist we acquired in March 2009.
  • Like for like sales in UK retail stores up 8.4%.
  • Final dividend of 7.5p net per share, bringing the total dividend for the year to 10.3p, an increase of 5.1% on last year (2009: 9.8p)

Key Metrics

  • The move to a six bottle minimum purchase (from twelve bottles) has resulted in a substantial increase in the number of customers who have made purchases in the last twelve months, up 54,000 to 472,000.
  • Average spend per transaction is just 4% down at £129 but strong growth in transaction numbers, up 14.6% to 1.7m.
  • Average bottle of still wine purchased at Majestic is now £6.56 (2009: £6.35).
  • Online sales increased 19.7% on last year and now represent 10.0% of UK retail sales.
  • Sales of fine wine (priced at £20 per bottle and above) increased by 22.7% on last year, representing 5.1% of UK store sales.

Stores

  • During the period we opened six new stores in Shrewsbury, Southend, Leith Walk in Edinburgh, Market Harborough, Abingdon and Sale. Since the year end we opened in Redhill.
  • We now operate from 153 stores in the UK and are encouraged by an increase in the level of opportunities for new sites appearing on the market.
  • We will roll out fine wine display areas to all stores over the next two years.

Current Trading

  • In the ten weeks from 30 March to 7 June 2010, like for like sales up 7.3%.

Commenting on the results Steve Lewis, Chief Executive, said:

We are very encouraged by our ability to attract new customers which will allow us to continue to grow our market share.  While the UK economic outlook remains uncertain, we believe that Majestic is well positioned for future growth.