For the fiscal year ending on 3 July 2026, Virgin Wines reported a varied financial outcome, with annual revenue climbing by 3.4 percent to reach £61 million. This growth signifies a rebound for the company, outperforming the broader drinks industry despite ongoing financial losses.
The company’s adjusted EBITDA recorded a loss of £0.2 million, a sharp drop from the previous year’s £2.3 million. Virgin Wines attributed this decline to heightened investments in its expansion plans, coupled with a challenging consumer environment and increased operational costs.
Customer Growth and Retention
Over the year, Virgin Wines expanded its customer base to 148,000, achieving a 41 percent year-over-year increase in new customers. Customer retention improved to 86 percent, up from 83 percent, while sales retention rose to 92 percent.
The Warehouse Wines division saw a 92 percent year-over-year revenue jump to £3.45 million, attracting 28,000 new customers. Strong performance was driven by commercial partnerships and corporate gifting initiatives, particularly with Moonpig and Ocado.
Challenging Trading Period Ahead
Virgin Wines anticipates a difficult trading environment in the coming years due to cost-of-living pressures, rising alcohol duties, EPR regulations, higher wages, and National Insurance contributions. Jay Wright, CEO of Virgin Wines, stated: “Despite a challenging consumer environment and significant cost pressures across the sector, we returned the business to growth after three years of flat like-for-like sales.
Commercial partnerships continued to develop, and early indications are that our new mobile app is performing strongly. Looking ahead, we’ve entered FY27 with real momentum and remain confident in our medium-term strategy. With a loyal and growing customer base, increasing progress across our key growth pillars and a strong, debt-free balance sheet, we believe we are well positioned to continue taking market share and deliver further growth in FY27.”
The company must address the challenges within the drinks market, leveraging its expanding customer base and robust commercial partnerships. However, it must also remain vigilant about the potential impact of cost pressures and changes in consumer spending patterns.
The company’s performance reflects broader trends in the drinks industry, where innovation and adaptation are essential to meet evolving consumer preferences. Virgin Wines’ focus on growth strategies, commercial partnerships, and corporate gifting exemplifies this approach.
