Majestic Wine profits fizz on prosecco sales

Prosecco sales climb 39% as profits rise - will the wine seller be having an Italian Christmas?

by Rachel Savage
Last Updated: 19 Feb 2015

Majestic Wine might want to crack out a bottle of prosecco to celebrate its interim results – sales of the Italian bubbly are up 39%, pushing the wine seller’s half year profit before tax up 4.2% from the same time last year to £9.5m. This may herald the return of the wine seller's annual fizz sales report - Majestic's yearly cheerleading session, celebrating our chugging champagne around the Christmas tree.

Sales were also up in the six months to the end of September, climbing 3.3% to £130.2m. Good news for the retailer, whose yearly sales had fallen 2.1% in April, after the Olympics had us cheering our athletes instead of quaffing vino.
Like-for-like UK store sales, excluding the impact of three new shops, were down 0.4%, with Majestic blaming last year’s Jubilee bonanza and Easter’s timing – that darn Christian calendar not following company reporting patterns.
It didn’t stop the retailer nudging its dividend up 5% to 4.2p a share, though. Perhaps shareholders will be able to join Majestic’s customers in appreciating the finer things in life – sales of wine costing £20 or more a bottle have soared 15.6% to £7.4m.
Online sales have also risen, up 8.3% compared to last year, although that was down to 10.3% of total sales from 11.1% in the 12 months to April. Business custom climbed 8.6% to £25.6m, making up 21.7% of UK sales.
Majestic’s chief executive Steve Lewis said that the company is ‘very well prepared’ for Christmas, but will Brits be buying champagne to sip under the mistletoe, or is the festive season going to have a decidedly Italian flavour?

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Interview ghosting: Stop treating job seekers like bad dates

Don’t underestimate the business impact of a simple rejection letter.

5 avoidable corporate disasters

And the lessons to learn from them.

Dressing to impress: One for the dustbin of history?

Opinion: Businesswomen are embracing comfort without sacrificing impact. Returning to the office shouldn't change that....

How to motivate people from a distance

Recognising success in a remote or hybrid environment requires a little creativity, says Insight SVP...

What pushy fish can teach you about influence at work

Research into marine power struggles casts light on the role of influence and dominant bosses...

The traits that will see you through Act II of the COVID crisis ...

Executive briefing: Sally Bailey, NED and former CEO of White Stuff.