Majestic Wine PLC Christmas Trading Statement (7323T)
10 January 2017 - 6:00PM
UK Regulatory
TIDMWINE
RNS Number : 7323T
Majestic Wine PLC
10 January 2017
For Immediate Release 10 January 2017
Majestic Wine PLC
("Majestic")
Christmas Trading Statement
Group sales up 15.3% - on track to be in line with full year
expectations
Majestic Wine PLC announces that Group sales for the 10 week
Christmas trading period ending 2 January 2017 increased by 15.3%
versus the same period in the prior year. On an underlying (1)
basis the increase was 12.4%. The Group delivers c.30% of total
annual sales during the Christmas trading period.
Majestic Retail had its biggest ever Christmas with like for
like sales up 7.5%, on top of 7.3% like for like growth in
Christmas last year. Approximately 0.5% of the growth was one-off
due to transfer of sales from closed stores.
The Group's Gross Margin percentage was around 1 percentage
point lower, versus the same period in the prior year, due to a
combination of accelerated acquisition of new customers and the
need to remain competitive in a heavily discounted UK market still
coming to terms with recent currency movements. Our maintained
focus on cost control means that profits are expected to be in line
with market expectations. (2)
Divisional performance at constant exchange rates:
Division Sales
--------------------- -------
% YoY
--------------------- -------
Majestic Retail +6.2%
--------------------- -------
Majestic Retail
LfL(3) +7.5%
--------------------- -------
Majestic Commercial -0.8%
--------------------- -------
Naked Wines +29.9%
--------------------- -------
Lay & Wheeler +62.3%
--------------------- -------
Group Total +12.4%
--------------------- -------
Rowan Gormley, Chief Executive, commented:
"Delivering strong like for likes in a tough market is a tribute
to the hard work that our people put in - right across the
business. It is also particularly pleasing that both Naked Wines
and Majestic Commercial traded in line with expectations and Lay
& Wheeler has maintained its strong growth.
Our transformation plan is working and we remain on track to
achieve our GBP500m sales goal. We said that we would be better
prepared for Christmas than ever - and the numbers show that we did
what we said we would do.
At this stage we are not predicting a change to long term margin
expectations, but we need to retain flexibility to compete in a
competitive market.
Our business is about people and I must say a massive thank you
to our teams across the world for their dedication over the peak
trading period - they have made me very proud."
---------------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
(1) Underlying movement (a) includes en primeur revenues in year
of order not year of fulfilment, and (b) is calculated using
constant exchange rates for translation
(2) As of 10 January we believe the consensus of revenue
expectations for FY17 is GBP445.2m and consensus PBT expectations
for FY17 is GBP11.3m
(3) Like for like sales trends refer to Retail sales only,
include Calais on a constant currency basis and exclude the impact
of new stores
For further information, please contact:
Majestic Wine PLC Tel: 01923 298 200
Rowan Gormley, Chief Executive
Officer
James Crawford, Chief Financial Tel: 07891 206239
Officer gabby.clinkard@majestic.co.uk
Gabriella Clinkard, Public & Investor
Relations
Investec (NOMAD & Joint Broker) Tel: 0207 597 5970
Garry Levin / David Flin / David
Anderson/Carlton Nelson
Liberum (Joint Broker) Tel: 020 3100 2222
Peter Tracey / Anna Hartropp /
Richard Bootle
Instinctif Partners (PR Agency) Tel: 0207 457 2020
Damian Reece
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 two in France. We help people find
the wines they will love through over 900 highly trained,
specialist store team members. Sales for the year ended 28 March
2016 were GBP244.0m.
--Naked Wines - Funds independent winemakers to make exclusive
wines at preferential prices which we pass onto our customers.
Naked Wines currently has 159 winemakers in 16 countries and
320,000 Mature Angels (Customers). Sales for the full year ended 28
March 2016 were GBP104.3m (GBP102.5m of this was post
acquisition).
--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. Sales for the year ended 28 March 2016 were
GBP45.6m.
--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. Sales
for the year ended 28 March 2016 were GBP10.0m.
This information is provided by RNS
The company news service from the London Stock Exchange
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