Virgin Wines Uk Plc · LSE:VINO
Virgin Wines Uk — H1 FY25 Earnings Presentation
38 slides from Virgin Wines Uk's earnings presentation, Mar 26, 2025
Slide 1: FY25 Interim Results
FY25 Interim Results
Slide 2: Contents
| FY25 Interim Results 2. Contents Key Objectives for FY25 3 H1FY25 Financial and 4-8 Operations H1 FY25 Trading Overview 9 - 16 Five-Year Plan - Project 17 - 25 £100m: Our Growth Strategy and Capital Allocation Plan Five-Year Plan - Project 26 - 34 £100m: Delivering Financial Performance Appendix 3
Slide 3: Key Objectives for FY25
| FY25 Interim Results 3. Overview of H1 FY25 Key Objectives for FY25 Recruitment Growth Retention Operations Find cost effective Move the WineBank Deliver increased Maintaining our ways to increase customer base back retention metrics position as lowest customer acquisition into growth 14.9% cancel
Slide 4: H1 FY25 Financial and Operations
| FY25 Interim Results 4. H1 FY25 Financial and Operations
Slide 5: Financial Summary
| FY25 Interim Results 5. Financial Summary Unaudited Unaudited 27 Dec 2024 29 Dec 2023 £’000s £’000s • Profit before tax increased by 20% to £1.3m for Revenue 34,084 34,286 the period Gross profit 10,122 10,654 • EBITDA is unchanged at £1.6m despite a 29.7% 31.1% £0.5m increased investment in new c
Slide 6: Margin and Cost Summary
| FY25 Interim Results 6. Margin and Cost Summary 32% Gross margin declined by 1.4% to Profit 29.7% down from 31.1% in H1 FY24, 30% Gross but remains 0.6% higher than H1 FY23 28% Operating Expenses The margin impact was fully offset 26% by a 1.4% drop in operating expenses from 28.2% to 26.9% 24% H1
Slide 7: Cash and Inventory
| FY25 Interim Results 7. Cash and Inventory £25m £20m • Inventory levels down £1.9m 22% on prior year £15m • Group Cash of £17.3m improved £6.2m £10m on H1 FY24 £5m • Customer deposits ring fenced and not H1 FY23 H1 FY24 H1 FY25 used to fund the operation Group Cash Customer WineBank Deposits Inven
Slide 8: Operational Efficiency
| FY25 Interim Results 8. Operational Efficiency Fulfilment cost per case Leverage investments in technology and training to enhance customer experience and deliver operational savings • Fulfilment cost per case fell 10% compared with H1 FY24 and is now 19% down on H1 FY23 • New Warehouse Management
Slide 9: H1 FY25 Trading Overview
| FY25 Interim Results 9. H1 FY25 Trading Overview
Slide 10: Customer Acquisition
| FY25 Interim Results 10. Trading Performance Customer Acquisition Marketing Cost Per Recruit New Customer Conversion Rate Fully Costed Cost Per Recruit £25 100% £20 80% £15 60% £22.67 £10 £20.51 40% £17.68 £15.71 £14.92 54% £5 £11.82 20% 41% 47% H1 FY23 H1 FY24 H1 FY25 H1 FY23 H1 FY24 H1 FY25 • Po
Slide 11: Customer Acquisition
| FY25 Interim Results 11. Trading Performance Customer Acquisition 15% This resulted in: Customer • A 29% uplift in total customers acquired by the Group Acquisition 50% 20% • A 23% increase in marketing investment in customer driven through acquisition 4 key areas • 53.5k customers acquired in the
Slide 12: Multi-Channel Strategy to Maximise Retention
| FY25 Interim Results 12. Trading Performance Multi-Channel Strategy to Maximise Retention Retention and loyalty driven through multi-channel activity and a variety of propositions 10% Customer Propositions 18% WineBank, 73% 26.5% 48% Monthly deposits, 20% interest, free express delivery 9% Wine Pl
Slide 13: Multi-Channel Strategy to Maximise Retention
| FY25 Interim Results 13. Trading Performance Multi-Channel Strategy to Maximise Retention Sales Retention Rate • Loyalty enhanced by customers finding the right option Customer Retention Rate for their own requirements 95% • WineBank rolling 12-month cancellation rate at all-time 90% low of 14.9%
Slide 14: A Fast-Growing Commercial Channel
| FY25 Interim Results 14. Trading Performance A Fast-Growing Commercial Channel Revenue through our B2B Commercial channel continues to grow year-on-year... ...and the channel works across a number of different verticals +17.0% H1 FY25 £5.31m £5m +7.0% Incentives, 3% +2.6% Corporate Gifts, 10% +25.
Slide 15: A Fast-Growing Commercial Channel
| FY25 Interim Results 15. Trading Performance A Fast-Growing Commercial Channel Revenue driven through established and new partnerships: Moonpig Ocado Travel Loyalty • An important and • A new partnership Long-standing and • We are proud to be a expanding launched in October valuable relationships
Slide 16: Our Value Proposition: Warehouse Wines
| FY25 Interim Results 16. Trading Performance Our Value Proposition: Warehouse Wines Following a soft launch in late 2023, proposition rolled out for FY25 Proving the concept 17k customers acquired by end of December ‘24 Drink Better, Spend Less Warehouse Wines is designed to attract a different cu
Slide 17: Five-Year Plan: Project £100m
| FY25 Interim Results 17. Five-Year Plan Project £100m Our Growth Strategy and Capital Allocation Plan
Slide 18: Rationale for Driving Growth Now
| FY25 Interim Results 18. Rationale for Driving Growth Now The last 5 years have seen unprecedented and volatile In addition, we have numerous cost trading conditions pressures including: • 45% revenue growth since the start of FY20 but it hasn’t been • A new duty regime that increases the delivere
Slide 19: The UK Off-Trade Wine Market
| FY25 Interim Results 19. The UK Off-Trade Wine Market Online growth and the move to premiumisation • Huge growth potential for both the specialist online sector and Virgin Wines within that sector • Four main specialist retailers in the DTC space £7.2bn (Laithwaites, Wine Society, Naked Wines and
Slide 20: The Growth Opportunity
| FY25 Interim Results 20. The Growth Opportunity Drive to Online penetration Huge market with tiny Strength of premiumisation expected to grow share currently balance sheet gives competitive advantage Four key growth pillars identified Increased Investment in Drive Growth in Commercial Utilise Tech
Slide 21: The Four Pillars of Growth
| FY25 Interim Results 21. The Four Pillars of Growth Increased Investment in Drive Growth in Commercial Utilise Technology to Enhance Investment In Customer Acquisition Partnerships Customer Engagement Warehouse Wines Increased Investment in Customer Acquisition • Recent test and learn has given co
Slide 22: The Four Pillars of Growth
| FY25 Interim Results 22. The Four Pillars of Growth Increased Investment in Drive Growth in Commercial Utilise Technology to Enhance Investment In Customer Acquisition Partnerships Customer Engagement Warehouse Wines Drive Growth in Commercial Partnerships • The Commercial channel has a track reco
Slide 23: The Four Pillars of Growth
| FY25 Interim Results 23. The Four Pillars of Growth Increased Investment in Drive Growth in Commercial Utilise Technology to Enhance Investment In Customer Acquisition Partnerships Customer Engagement Warehouse Wines Utilise Technology to Enhance Customer Engagement We see a number of ways to use
Slide 24: The Four Pillars of Growth
| FY25 Interim Results 24. The Four Pillars of Growth Increased Investment in Drive Growth in Commercial Utilise Technology to Enhance Investment In Customer Acquisition Partnerships Customer Engagement Warehouse Wines Utilise Technology to Enhance Customer Engagement We see a number of ways to use
Slide 25: The Four Pillars of Growth
| FY25 Interim Results 25. The Four Pillars of Growth Increased Investment in Drive Growth in Commercial Utilise Technology to Enhance Investment In Customer Acquisition Partnerships Customer Engagement Warehouse Wines Investment in Warehouse Wines • Premiumisation has driven significantly increased
Slide 26: Five-Year Plan: Delivering Financial Performance
| FY25 Interim Results 26. Five-Year Plan Project £100m Delivering Financial Performance
Slide 27: Where we are now
| FY25 Interim Results 27. Where we are now 77% of revenue derived from FY25f revenue 45% up on pre COVID level Virgin Core Repeat Customer base £80m £70m £60m 77% £50m FY25f £61m 14% £40m £30m FY19 FY20 FY21 FY22 FY23 FY24 FY25f 6% 3% Revenue 42.4 56.5 73.6 69.2 59.0 59.0 61.0 Underlying 2.3 4.4 7.
Slide 28: Organic Growth
| FY25 Interim Results 28. Organic Growth c.£103m £61m FY25f Recruitment Core Virgin Technology Commercial Warehouse FY30p Customers Wines • Growth in core sales through increased recruitment to grow active customer base FY30p Revenue by Sector • Incremental revenue through new technology to increas
Slide 29: Driving Operational Leverage
| FY25 Interim Results 29. Driving Operational Leverage £120m £100m Revenue, c.£103m £80m Cost of Sales, £73m £60m £40m £20m Underlying Operating Costs, £22.5m (pre depreciation and share based payments) FY25f FY26p FY27p FY28p FY29p FY30p 8% 7% Delivering EBITDA margin of 7% in FY30p 6% 5% Buying e
Slide 30: Additional Investment in Organic Growth
| FY25 Interim Results 30. Additional Investment in Organic Growth Strong Balance Sheet and cash position that can fund growth via Opex, Capex and return cash to shareholders via buybacks £5m £25m £4m £20m £3m £15m £2m £10m £1m £5m FY25f FY26p FY27p FY28p FY29p FY30p FY26p FY27p FY28p FY29p FY30p Gr
Slide 31: Signposts to Success
| FY25 Interim Results 31. Signposts to Success Customer Commercial Technology Warehouse Wines Acquisition Number of Incremental Sales Growth Sales Growth Recruits Revenue Streams Increased Customer Number of Cost per Recruit Engagement Recruits Customer Base New Acquisition Growth Channel Conversio
Slide 32: Capital Allocation Strategy
| FY25 Interim Results 32. Capital Allocation Strategy Priority One: Organic Growth 1 Board and Investor preference is always investment in growth via Opex or Capex Priority Two: Share Buyback 2 The strong Balance Sheet and cash position enables the Group to not only invest in growth but also return
Slide 33: Share Buyback Scheme
| FY25 Interim Results 33. Share Buyback Scheme The Board consider the shares to be Following approval by shareholders the Board has currently undervalued given the strong announced commencement of a share buyback balance sheet, cash position and loyalty of programme our customer base • Authority to
Slide 34: Thank You
| FY25 Interim Results 34. Thank You Any Questions?
Slide 35: Appendix
| FY25 Interim Results 35. Appendix
Slide 36: Group Income Statement
| FY25 Interim Results 36. Group Income Unaudited Unaudited Statement 27 Dec 2024 £’000s 29 Dec 2023 £’000s Revenue 34,084 34,286 Cost of sales (23,962) (23,632) Gross profit 10,122 10,654 Operating expenses (9,153) (9,678) Operating profit 969 976 Finance income 372 161 Finance costs (68) (80) Prof
Slide 37: Group Cash Flow
| FY25 Interim Results 37. Unaudited Unaudited Group 27 Dec 2024 £’000s 29 Dec 2023 £’000s Cash Flow Cash flows from operating activities Profit before taxation 1,273 1,057 Adjustments for: Depreciation and amortisation 643 642 Net finance costs (304) (81) Share-based payment 34 137 Decrease/(increa
Slide 38: Group Balance Sheet
| FY25 Interim Results 38. Unaudited Unaudited Audited Group 27 Dec 2024 29 Dec 2023 28 June 2024 £’000s £’000s £’000s Assets Balance Non-current assets Intangible assets 11,067 11,145 11,159 Property, plant and equipment 133 306 202 Sheet Right of use assets 2,120 2,620 2,370 Deferred tax asset 28