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Revenues have almost doubled at Gusbourne as the English wine maker emerged from the pandemic with a growing online presence.
Net revenues increased 99% to £4.2m in the year ended 31 December as the business expanded its customer base across all distribution channels, both in the UK and overseas.
Gusbourne now distributes to 25 countries around the world, with international sales up by 23% in 2021.
The company reported significant growth in the UK on-trade as the sector continued its recovery from the effects of Covid, with net wine sales up 168% to £1.9m.
Its direct-to-consumer operation saw wine sales, together with related tour and tasting events at its Kent site, more than double to £1.4m.
DTC wine sales alone rose 84% and included year-on-year online sales, which grew by 69%, reflecting the ongoing investment in the digital channel and marketing.
However, losses also increased during the year as a result of growing operating expenses and investment in the growth of the business.
Adjusted EBITDA came in at a loss of £1.5m, up from £1.3m in 2020, and pre-tax losses totalled £3.6m, compared with £3.1m in the prior year.
Chairman Jim Ormonde said: “In so many ways, 2021 was the year in which Gusbourne successfully positioned itself at the forefront of the burgeoning English wine sector, as we successfully increased overall revenues faster than at any other time in the company’s history.”
CEO Charlie Holland added: “2021 marked a welcome return to normal trading for English wine, and I am pleased to report that it has been another successful year for Gusbourne.”
Net revenues continued to demonstrate “strong” year-on-year growth in line with management forecasts in 2022.
Holland said: “The company is mindful of the inflationary pressures that are being seen across all areas of the business as a result of an uncertain political and economic environment generally, but believe it is in a position to mitigate these pressures through its sales and product strategies and increased business efficiencies through scale and careful cost management.”
Morning update
It is a quiet start to the week on the markets for fmcg stocks following the extended four-day Jubilee celebrations.
The FTSE 100 opened in buoyant mood, rising 1.2% to 7,621.94pts.
Early risers included Greencore Group, up 6.1% to 116.4p, Nichols, up 3.6% to 1,326.6p, and Sainsbury’s up 3% to 234.1p.
Early losers were few and far between, with Bakkavor Group down 0.2% to 100p, Finsbury Food Group down 0.6% to 72.6p and Wynnstay Group down 0.7% to 605.8p.
This week in the City
It’s a steady week for scheduled news on the markets following the Queen’s Platinum Jubilee.
Tomorrow sees the latest monthly retail sales data from the BRC and KPMG, and quarterly results in the US from food and pet food group JM Smucker
Jack Daniel’s distiller Brown-Forman reports its latest quarterly numbers on Wednesday in the US.
Thursday brings full-year results from ingredients supplier Tate & Lyle, with a first-quarter trading update from British American Tobacco and a quarterly update from Campbell’s Soup in the US.
Annual figures from Naked Wines round the week off on Friday, along with the AGM at THG.
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