Virgin Wines doubles earnings as sales rise, costs fall

Virgin Wines (LSE: VINO) shares fell 4% to 36.45p on Monday despite the online wine retailer reporting a doubling of first-half earnings amid falling costs.

The company said revenue increased 2.1% to £34.2 million in the six months to December 29th while earnings before interest, tax, depreciation and amortisation jumped to £1.8 million from £800,000 a year earlier. Virgin Wines attributed the earnings rise to a 15% reduction in operating variable costs owing to “stringent cost management”.

Read More News:
Vodafone leads Europe’s first successful 5G upload speed test

The wine seller also focused its marketing on acquiring “high-quality” new customers, lifting its new customer conversion rate by 22% and cutting cost per acquisition by 14%.

With sales continuing to grow and costs tightly controlled, Virgin Wines said it remains confident in delivering a “positive” full-year performance in line with market expectations.