Virgin Wines Uk Plc · LSE:VINO
Virgin Wines Uk — FY2023 Earnings Presentation
30 slides from Virgin Wines Uk's earnings presentation, Oct 25, 2023
Slide 1: Virgin Wines UK plc Investor Presentation FY23
Virgin Wines UK plc Investor Presentation FY23
Slide 2: FY23 overview
FY23 overview Financial review The year in detail Business review/new initiatives Current trading and outlook Virgin Wines UK plc Investor Presentation FY23
Slide 3: The year in review
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 1 The year in review A challenging year with an unprecedented set of macro-economic factors: • Spiralling energy costs • Ever increasing interest and mortgage rates • Generationally
Slide 4: The year in review continued
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 2 The year in review continued We also experienced one-off exceptional issues that had a material effect on our FY23 performance Most significantly the introduction of a new Warehous
Slide 5: The year in review continued
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 3 The year in review continued There were still numerous positive areas of progress despite the challenging environment, demonstrating the strength of the business’ underlying model:
Slide 6: Financial review
FY23 overview Financial review The year in detail Business review/new initiatives Current trading and outlook Virgin Wines UK plc Investor Presentation FY23
Slide 7: Group income statement
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 4 Audited Audited Group income statement FY23 FY22 £’m £’m • Financial year impacted by a number of one-off issues Revenue 59.0 69.2 Gross profit 17.4 21.7 • Revenue for the year of
Slide 8: Group balance sheet
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 5 Audited Audited Group balance sheet 30 June 1 July 2023 2022 £’m £’m • A strong balance sheet with no debt ASSETS • Net assets virtually like for like with FY22 (£21.9m vs. £22.1m)
Slide 9: Group cash flow
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 6 Audited Audited Group cash flow 30 June 1 July 2023 2022 £’m £’m • Capital Expenditure of £0.9m in FY23 (FY22 £1.0m) Profit before taxation (0.1) 5.1 • Inventory well managed in H2
Slide 10: Margins and costs
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 7 Margins and costs • Cost pressures continued throughout the year in a variety of areas: ◦ Escalating costs relating to 'dry' goods drove increase in the cost price of wine ◦ Wage i
Slide 11: The year in detail
FY23 overview Financial review The year in detail Business review/new initiatives Current trading and outlook Virgin Wines UK plc Investor Presentation FY23
Slide 12: Customer acquisition
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 8 Customer acquisition A challenging environment for customer acquisition • However 91.5k new customers still acquired • Marketing cost per recruit well controlled at just £11.99, a
Slide 13: Customer acquisition continued
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 9 Customer acquisition continued 70% of recruits acquired • We continue to focus on driving the partnership channel to through partnerships; keep the CPA low with 70% of recruits del
Slide 14: A customer base driven by WineBank
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 10 A customer base driven by WineBank Our WineBank scheme continues to perform robustly with strong underlying trends • The proposition, which rewards members with 20% interest on th
Slide 15: A customer base driven by WineBank continued
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 11 A customer base driven by WineBank continued • Order frequency declined during H123 as members saved until their purchases were covered with WineBank deposits, rather than ‘toppin
Slide 16: Commercial channel
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 12 Commercial channel We are delighted to work with a range The Commercial channel continues to be a key area of focus of high profile commercial partners with significant headroom f
Slide 17: Operations & customer care
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 13 Operations & customer care Warehouse and Fulfilment Customer care • We operate our own fulfilment centres with over 100k sq ft of • The customer service team performed with the ut
Slide 18: Operations & customer care continued
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 14 Operations & customer care continued Wine Advisors • Our team of 42 wine advisors offer over 50k of our customers a free, one-to-one, personal service and look after their entire
Slide 19: Open-source wine buying
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 15 Open-source wine buying • With the cost pressures seen over the past year our flexible wine buying model has never been more important • The ability to source from the world’s win
Slide 20: ESG
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 16 ESG We continue to prioritise the impact our business has on our environment and our people alongside our commercial ambitions. We were delighted to make progress again this year
Slide 21: Business review/new initiatives
FY23 overview Financial review The year in detail Business review/new initiatives Current trading and outlook Virgin Wines UK plc Investor Presentation FY23
Slide 22: New initiatives following Business Review
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 17 New initiatives New initiatives following Business Review: With the changing consumer landscape, it is important we adapt accordingly We have therefore looked at a number of initi
Slide 23: New initiatives: Warehouse Wines
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 18 New initiatives: Warehouse Wines With the popularity of value propositions, we identified a significant market opportunity in the DTC space • Virgin Wines is largely selling wines
Slide 24: New initiatives: Creative refresh of Virgin Wines brand
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 19 New initiatives: Creative refresh of Virgin Wines brand We believe Virgin Wines doesn’t visually or promotionally represent the quality of the product wines • Customer focus group
Slide 25: New initiatives: Five O'clock Somewhere (5OS) wine club
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 20 New initiatives: Five O’clock Somewhere (5OS) wine club 5OS is a niche brand that is exclusive to Virgin Wines in the UK • Features renegade winemaking that delivers high quality,
Slide 26: New initiatives: Vineyard Collection
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 21 New initiatives: Vineyard Collection A wine range designed to add provenance to the Virgin Wines wine proposition • Wineries we work with have given Virgin Wines a bespoke plot of
Slide 27: Current trading and outlook
FY23 overview Financial review The year in detail Business review/new initiatives Current trading and outlook Virgin Wines UK plc Investor Presentation FY23
Slide 28: Current trading - Q124
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 22 Current trading - Q124 A positive start to FY24 with a number of encouraging signs • Sales have been in line with our expectations and are 12% ahead YOY • Sales to existing custom
Slide 29: Focus for FY24
FY23 OVERVIEW | FINANCIAL REVIEW | THE YEAR IN DETAIL | BUSINESS REVIEW/NEW INITIATIVES | CURRENT TRADING AND OUTLOOK 23 Focus for FY24 1. A tried and tested model that will 2. Implement the new initiatives 3. Continue to look at opportunities for drive organic growth highlighted from the Business f
Slide 30: Thank you
wines Thank you Virgin Wines UK plc Investor Presentation FY23