Wine distributor Off-Piste Wines has reported double-digit sales growth as international sales spiked.
Revenues for the year to 31 January 2019 rose 14% to £39.6m, boosted by a 54% rise in international sales.
Though over 90% of sales are generated in the UK, described by the company as a “highly competitive” and “very challenging” market, international sales, especially in Europe, drove most of the increase, reaching £2.6m last year.
Off-Piste said it expected non-domestic sales to “again outpace” growth in the UK in the next financial year and beyond.
The company currently imports wines in bottle and bulk from EU countries, notably Spain and Italy, and non-EU countries, including New Zealand, Australia and South Africa.
With regards to Brexit and the risks associated with leaving the EU, Off-Piste Wines MD Andy Talbot told The Grocer: “It is widely recognised that a no-deal Brexit would not be good for most UK business.
“While there could be a small period of time when logistical systems are stretched as Britain adapts to life outside the EU, we do not believe this will materially affect our trading, thanks to our working closely with our international freight agents and because the new government will be implementing a process of leaving with a deal in place.”
Operating profits fell 5% to £2.7m, largely due to “planned overhead increases” as the business continued to invest in its brands, such as Most Wanted, to lay the “foundations for future growth”.
Pre-tax profits reduced marginally to £2.7m from £2.8m a year ago.
Looking ahead, Talbot said Off-Piste had a “really positive future outlook”, with a five-year plan to double the business by expanding both in the UK and internationally.
To this end, the business has expanded its team, supply base, brand portfolio, number of customers and international markets.
“We have some very exciting consumer-led products launching in 2020 which will reach totally new consumers for Off-Piste,” Talbot said.
In March, Off-Piste had appointed corporate finance firm Clearwater International as advisers to explore possible options to fund its next stage of growth, including traditional debt or a potential sale.
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