Virgin Wines has returned to revenue growth after several years of flat like-for-like sales, after growing its customer base by an “exceptional” 41%.
Revenue increased by 3.4% to £61m in the year to 3 July 2026, as the company raced ahead of a declining online drinks market.
But Virgin Wines’ investment in growth knocked the company’s bottom line, as EBITDA fell from £2.3m to a loss of £200k. Pre-tax losses amounted to £1.5m.
The company insisted it was taking a “disciplined and efficient” approach to investment, with the 41% growth in new customers coming despite only a “modest” increase in customer acquisition spend from £13.76 to £15.63.
Virgin Wines CEO Jay Wright told investors it had been an “excellent year of progress”.
“Despite a challenging consumer environment and significant cost pressures across the sector, we returned the business to growth after three years of flat like-for-like sales, with revenue increasing by 3.4% to £61 million and significant market share gains, in sharp contrast to the performance seen across the wider sector,” he said.
“Importantly, the investments we are making are delivering results.”
Wright pointed to the growth in new customers and early indications that a mobile app launched this year was performing “strongly”.
Virgin Wines’ growth has picked up further in Q1 2027, with revenue up 4.5% on last year and further expansion of its customer base.
Bulk-buy subsidiary Warehouse Wines is also due to turn a profit in 2027, having won 92% revenue growth to £3.45m in the year.
Customer acquisition costs have likewise begun to fall, and profitability will be further aided by the consolidation of Virgin Wines’ logistics from two sites into a new national distribution centre in Preston, with benefits felt from FY2028.
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