Majestic Wine has cited Labour tax policies and the transition to a “new and highly complex alcohol duty regime” as two reasons behind a sharp dip in its profits.
The specialist retailer saw pre-tax profits fall by almost 50% from £14.3m to £7.7m in the year ended 31 March 2025, newly filed accounts at Companies House showed. Revenues, meanwhile, eked up by just 0.2% to £386m.
“The economic environment became more challenging during the year especially following the new government’s election in July 2024 and its budget in October 2024,” Majestic said. “This all contributed to more fragile consumer confidence, impacted by cost of living concerns and uncertainty over the new government’s tax policy and elevated mortgage rates, resulting in pressure on disposable income.”
Majestic also had to absorb increases in national minimum wage and adjust to the new alcohol duty regime, it pointed out. Wine was given a temporary reprieve from the Conservatives’ overhaul of alcohol duty in 2023, but this easement period ended in February 2025.
The retailer had been hit with “additional IT cost investment” as it sought to implement necessary changes to its systems as a result of easement ending,
“The new duty regime was on top of the largest duty increase in 50 years implemented in August 2023 adding further inflationary pressures to the alcohol sector,” said Majestic. ”The business will also be impacted by the new EPR (extended producer responsibility) regulations in FY25.”
Majestic’s results were also affected by Easter falling outside its financial year and “unseasonal cold and wet weather” throughout spring and summer 2024, it explained, adding the latter had hit bulk party and rosé sales.
It also recorded a number of other exceptional costs including those associated with the acquisition of Vagabond in April 2024, and the purchase of on-trade distributor Enotria shortly before year-end.
As a result, operating profits declined by 26.6% to £16.0m.
Majestic investing in ‘growth strategy’
Majestic – owned by Fortress Investment Group – opened six new stores in the period covered by the results, but was also hit with two unplanned store closures in Ealing and Epsom.
It also temporarily shut its Vagabond site in Battersea Power Station for extensive refurbishment.
Majestic Wine Group executive chairman and CEO John Colley said: “This was a transformative year for Majestic. We grew revenue year-on-year and our profits were in-line with expectations, reflecting the investments we made in our growth strategy. We opened six new Majestic stores, acquired the Vagabond wine bar business, and laid the foundations for three experiential new bars in prime London locations, which opened in the autumn.
“Shortly following the year-end, we also completed the acquisition of premium wines and spirits distributor Enotria, re-positioning Majestic as the UK’s largest premium end-to-end drinks specialist across retail, wholesale and hospitality.
“Our investment strategy is working, and we are incredibly excited about the future opportunities we have to grow our business further and help even more consumers discover new wines, beers and spirits they will love.”
No comments yet