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Majestic Wine swings to profit but warns market to remain tough

Majestic Wine
Majestic Wine   The company made a profit of £8.3m

Majestic Wine said that it swung to a profit in the year to 2 April 2018 but warned that it expects the market to remain tough.


The company made a profit of £8.3m versus a loss of £1.5m the year before, as revenue rose 2.3% to £476.1m. Meanwhile, the final dividend per share was lifted to 5.2p from 3.6p in 2017.

Naked Wines saw underlying sales growth of 11.3% in the year to £156.1m, with the business growing "considerably" in the US and Australian markets. Adjusted earnings before interest and taxes were up a whopping 571.2% to £8.7m.

Majestic Commercial saw underlying revenues fall 5.6% to £43.5m and EBIT rise 1.7% to £2.4m in the period as the division has been in a holding pattern up until the appointment of a new managing director, Olivia Fitzgerald, in April 2018.

Majestic said it was hopeful that this business is now in a position to start to grow again following the investment in the Majestic Retail IT systems and processes.

In Majestic Retail, underlying revenue was 1.9% higher at £263.8m and adjusted EBIT was 0.4% firmer at £13.3m. Lay & Wheeler, meanwhile, saw its revenues edge up 0.2% to £14.5m and EBIT drop 1% to £0.9m.

Majestic Commercial saw revenues fall 5.4% in the period as the division has been in a holding pattern up until the appointment of a new Managing Director, Olivia Fitzgerald, in April 2018.

Olivia has extensive sales and hospitality experience, and has jumped straight in. We are hopeful that this business is now in a position to start to grow again following the investment in the Majestic Retail IT systems and processes.

 

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