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English wine maker Chapel Down has registered a record year as sales of traditional method sparkling wine boomed.
The group generated full-year revenues of £15.6m in 2022, up 10% on 2021, with growth of 14% in the second half providing “good momentum” into 2023.
Traditional method sparkling wine sales fizzed 53% higher to £9.6m, with an annual record volume of 790,000 bottles sold, compared with 522,000 in 2021.
The push by Chapel Down to focus on selling more of the premium sparkling wine also helped gross margin to expand from 49% to 55%.
Operating profits rose 51% to £1.7m as a result, with adjusted EBITDA up 30% to £2.8m.
CEO Andrew Carter said: “2022 has been a record year for Chapel Down with exceptional profitable growth delivered driven by the stellar performance of our traditional method sparkling wines, as we continue to premiumise the Chapel Down brand.”
He added the group was confident it could build on 2022’s successes.
Chapel Down has invested in building capacity, with 750 fully productive acres for the 2023 harvest, as well as planting another 156 acres in spring.
The group now has the capacity to convert a bumper 2022 harvest into more than two-million bottles of wine.
“As our capacity grows, so does consumer awareness and demand for our brand,” Carter said.
Chapel Down is aiming to double revenues during the period from 2021 to 2026 to £28m.
The group is currently trading in line with management expectations and has a “positive” outlook for 2023, with double-digit sales growth and further improvement in margin forecast.
“The English wine industry is enjoying the fruits of its extraordinary terroir, favourable climate and sustained investment, and these advantages show no sign of abating,” Carter added.
“We have created a passionate, world-class team at Chapel Down, supported by strong relationships with our customers, growers and suppliers, who are all equally excited about developing this unique English wine growth story. This underpins our plans to double the size of the Chapel Down business by 2026.”
Morning update
The Artisanal Spirits Company has posted double-digit revenue and membership growth in 2022.
The curator of single-cask and limited-edition spirit brands and owner of The Scotch Malt Whisky Society increased revenues ahead of market expectations, with growth of 19% to £21.8m.
Adjusted EBITDA improved by £1m to £400k, while pre-tax losses lessened from £2.7m to £2.1m.
Membership with the Scotch Malt Whisky Society increased 12% to more than 37,000.
CEO Andrew Dane said: “Our ambition is to create a global, premium business which is highly profitable and cash generative by delivering the world’s best whisky experiences.”
He added: “The new financial year has begun well. We remain on track to meet our 2024 revenue target of £30m and deliver significant progress on our path to sustained profitability.”
The FTSE 100 is up 0.4% to 7,510.16pts this morning.
Early risers so far include Coca-Cola Europacific Partners, up 3.8% to 55p, Naked Wines, up 2% to 101.6p, Tesco, up 1.9% to 259.7p, and THG, up 1.9% to 62.3p.
Science in Sport, Marks & Spencer and Associated British Foods are down 6.5% to 12.2p, 2.3% to 155.2p and 2% to 1,913p respectively.
Yesterday in the City
FTSE 100 nudged 0.2% higher to 7,484.25pts yesterday.
There was further pressure on Ocado’s share priced following a mixed Q1 update showing smaller basket sizes but good growth in active customers. The stock fell 3.4% to 436.9p.
Diageo shares fell 1% to 3,546.5p as CEO Ivan Menezes announced his retirement, with chief operating officer Debra Crew appointed as his succesor.
Drinks group AG Barr slumped 6.1% to 509p despite double-digit annual sales growth as it warned margins were under pressure.
M&S and McBride were among the risers, up 2.4% to 158.8p and 2.2% to 26.6p respectively.
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