Majestic Wine PLC Christmas Trading Statement (2830B)

TIDMWINE

RNS Number : 2830B

Majestic Wine PLC

09 January 2018

For Immediate Release 9 January 2018

Majestic Wine PLC

("Majestic")

Christmas Trading Statement

Group sales up 3.2% - a robust performance in a tough market - on track to meet full year expectations (2)

Majestic Wine PLC announces that Group sales, for the 10 week Christmas trading period ending 1 January 2018, increased by 3.2% versus the same period in the prior year. On an underlying (1) basis the increase was 4.1%. The Group delivers c.30% of total annual sales during the Christmas trading period.

Majestic Retail delivered a good result with sales up 1.2% (1.3% like-for-like) versus tough comparatives of 6.2% (7.5% like-for-like) last year.

The Group's Gross Margin percentage was broadly flat year on year.

Subject to continued satisfactory trading, the Group remains on track to achieve current market expectations and to accelerate sales growth in the medium term by increasing our investment in new customer acquisition.

Divisional performance at constant exchange rates:

 
           Division              Sales 
------------------------------  ------- 
                                  %YoY 
------------------------------  ------- 
 Majestic Retail                 +1.2% 
------------------------------  ------- 
 Naked Wines                     +13.0% 
------------------------------  ------- 
         Naked Wines UK          +7.4% 
------------------------------  ------- 
        Naked Wines USA          +13.0% 
------------------------------  ------- 
        Naked Wines Australia    +33.1% 
------------------------------  ------- 
 Majestic Commercial             -4.6% 
------------------------------  ------- 
 Lay & Wheeler                   -4.7% 
------------------------------  ------- 
 Total                           +4.1% 
------------------------------  ------- 
 

Majestic Wine also announces Joshua Lincoln has been appointed Retail & Managing Director of Majestic Retail with immediate effect. Josh has been Customer Director at Majestic Retail since 2016. Prior to this he oversaw Sales and Service in Naked Wines in the UK, USA and Australia.

Rowan Gormley, Chief Executive, commented:

"The team performed brilliantly.

The fact that we have been able to grow sales and maintain margins shows that our winning formula of fabulous customer service from delightful people and delicious wines at fair prices works even when times are tough.

I am very pleased to announce that Josh Lincoln has been appointed Retail & Managing Director. Josh's promotion is richly deserved having transformed our store network into an entrepreneurial retail proposition during his time as Customer Director.

We are on track to achieve our GBP500m sales goal by 2019, on track to deliver market expectations for the current financial year, and on track to accelerate investment in new customers, new winemakers and more fantastic wines."

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Notes:

(1) Underlying movement (a) includes en primeur revenues in year of order not year of fulfilment (b) is calculated using constant FX rates for translation of the comparative period

    (2)   Analyst consensus estimates can be found on www.majesticwineplc.co.uk 

For further information, please contact:

 
 Majestic Wine PLC                        Tel: [phone] 
  Rowan Gormley, Chief Executive 
  Officer 
  James Crawford, Chief Financial          Tel: [phone] 
  Officer                                  [e-mail] 
  Gabriella Clinkard, Public & Investor 
  Relations 
 Investec (NOMAD & Joint Broker)           Tel: [phone] 
  Garry Levin / David Flin / David 
  Anderson / Carlton Nelson 
  Liberum (Joint Broker)                   Tel: [phone] 
   Peter Tracey / Richard Bootle 
 Instinctif Partners (PR Agency)          Tel: [phone] 
  Damian Reece / George Yeomans            or 07931 598 593 
 

About Majestic Wine PLC:

Majestic Wine PLC is a leading wine specialist, operating in four separate divisions, each with the fundamental goal of delivering sustained growth in shareholder value by doing the right thing for the Group's customers, suppliers and people:

--Majestic Retail - The UK's largest specialist wine retailer, with 210 branches in the UK and 2 in France. We help people find the wines they will love through over 1000 highly trained, specialist store team members. Reported sales for the year ended 3 April 2017 were GBP262.2m.

--Naked Wines - Funds independent winemakers to make exclusive wines at preferential prices which we pass onto customers. Naked Wines currently has 177 winemakers in 16 countries and 371,000 Mature Angels (Customers). Reported sales for the full year ended 3 April 2017 were GBP144.3m.

--Majestic Commercial - A specialist on-trade supplier who aims to support businesses to make their wine lists more profitable, with the unique advantage of running their supply chain through Majestic Retail stores. Reported sales for the year ended 3 April 2017 were GBP46.6m.

--Lay and Wheeler - A specialist fine wine merchant. Lay & Wheeler aims to be a trusted guide for people who love fine wine, supplying the world's finest wines with a personal service. Reported sales for the year ended 3 April 2017 were GBP12.3m.

This information is provided by RNS

The company news service from the London Stock Exchange

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January 09, 2018 02:00 ET (07:00 GMT)