Virgin Wines Uk Plc · LSE:VINO
Virgin Wines Uk — FY2024 Earnings Presentation
27 slides from Virgin Wines Uk's earnings presentation, Oct 22, 2024
Slide 1: Virgin Wines UK plc FY24 Annual Results Presentation
Virgin Wines UK plc FY24 Annual Results Presentation
Slide 2: Robust business model generating profit and cash
1 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix FY24 Overview: Robust business model generating profit and cash Boost Margin Driving Strong cash profitability improvement operational generation efficiency +5
Slide 3: Loyal high quality customers underpinning predictable future revenue
2 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix FY24 Overview: Loyal high quality customers underpinning predictable future revenue and contribution streams Continued discipline Quality recruits Jump in sale
Slide 4: Initiatives creating the platform for future growth
3 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix FY24 Overview: Initiatives creating the platform for future growth Continuing growth in Successful trial of Five O’clock Vineyard Collection Commercial revenue
Slide 5: Financial highlights for FY24
4 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Financial Review: Financial highlights for FY24 • Strong recovery in profitability with profit before tax up £2.4m to £1.7m Audited Audited • Revenue stable at
Slide 6: Highest ever gross margin % delivered
5 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Gross Margin Highest ever gross margin % delivered Gross margin increased to 31.9% from 29.6% despite numerous headwinds 32% 31% 30% 29% FY
Slide 7: Low cost to serve and high service standards are core to our business model
6 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Operational Efficiency Low cost to serve and high service standards are core to our business model Costs fell and service improved • Fulfil
Slide 8: Low cost to serve and high service standards: cost reduction
7 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Cost Reduction Low cost to serve and high service standards are core to our business model Cost reduction • At the Interim update we signal
Slide 9: Working Capital and Cash Generation
8 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Working Capital and Cash Generation Group is debt free and generating cash from profitable operations and effective working capital managem
Slide 10: Customer Acquisition: lower volume offset by higher quality
9 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Customer Acquisition Lower volume offset by higher quality and improved performance measures x = + Lower cost per Increase in Fully costed
Slide 11: Improvements in key trends from our loyal repeat customers
10 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Customer Base Improvements in key trends from our loyal repeat customers Five reasons to be confident about future earnings 1. Repeat reve
Slide 12: WineBank
11 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: WineBank Voted Wine Club of the Year 150k WineBank membership: 125k 100k 75k Encouraging trends in FY24 50k 25k • Year on year revenues up
Slide 13: Continuing investment in the Commercial sales channel
12 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Commercial/B2B Continuing investment in the Commercial sales channel Our flexible approach to meeting customer needs enables the Group to
Slide 14: Wine buying the Virgin way
13 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix The Year In Detail: Wine buying the Virgin way Our open source approach to wine buying maximises quality and value every vintage • Our approach to wine buying
Slide 15: Drink Better, Spend Less with Warehouse Wines
14 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix New Initiatives: Drink Better, Spend Less with Warehouse Wines Moved from development and trial stage in FY24 to investment and growth phase in FY25 “ Top ret
Slide 16: Five O'clock Somewhere
15 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix New Initiatives: Five O’clock Somewhere Elite, small-batch, handcrafted wines from Australia • A new wine club launched to showcase the outstanding quality an
Slide 17: Vineyard Collection
16 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix New Initiatives: Vineyard Collection Crafting wines from our own vines • Our most ambitious venture into bespoke winemaking • Seven wines have been created fr
Slide 18: ESG: Sustainability
17 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix ESG: Sustainability A year of significant progress in a variety of areas Our commitment to having a positive impact on the planet and our people has never bee
Slide 19: ESG: People
18 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix ESG: People As a purpose led business our people sit at its heart • Increased investment in learning and development • A commitment to maintaining a positive
Slide 20: Outlook: Highlights
19 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Outlook Highlights • Email channel goes from strength to strength with tactical use of SMS driving revenue • Newly streamlined Wine Advisor team delivering 10
Slide 21: Outlook: Current priorities
20 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Outlook Current priorities • Drive increased number of new customers • Trial new customer acquisition offers and creatives • Drive commercial partnerships sti
Slide 22: Outlook: Capital allocation
21 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Outlook Capital allocation We are aware of the strength of our balance sheet and the need to use cash to benefit shareholders This is an active Board agenda p
Slide 23: Appendix
22 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Appendix
Slide 24: Appendix: Income Statement
23 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Appendix: Income Statement Audited Audited FY24 FY23 £’m £’m Revenue 59.0 59.0 Gross profit 18.8 17.4 Gross profit % 31.9% 29.6% Operational expenses (16.0) (
Slide 25: Appendix: Balance Sheet
24 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Appendix: Balance Sheet Audited Audited Audited Audited FY24 FY23 FY24 FY23 £’m £’m £’m £’m ASSETS Non-current assets Non-current liabilities Intangible asset
Slide 26: Appendix: Cashflow
24 Virgin Wines UK plc Annual Report and Accounts 2024 FY24 Overview Financial Review The Year In Detail New Initiatives ESG Outlook Appendix Appendix: Cashflow Audited Audited Audited Audited FY24 FY23 FY24 FY23 £’m £’m £’m £’m Cash flows from operating activities Cash flows from financing activiti
Slide 27: Thank you
Thank you Any questions?