Gusbourne Plc (AIM: GUS), the premium English sparkling wine producer, is pleased to report the following unaudited results for the six month period ended 30 June 2023 ("H1" or "H1 2023").
Strong UK wine sales growth in H1 of 24%
Highlights:
UK wine sales:
Strong UK wine sales (1) growth with H1 up by 24% to £2.3m (H1 2022: £1.9m), reflecting continued strong sales growth across our direct to consumer ("DTC") and UK Trade sales channels:
- DTC wine sales up by 21% to £650,000 (H1 2022 £586,000), driven by investment in digital marketing and direct wine sales arising from our tour and experience programme at the Nest, Gusbourne's cellar door operation in Kent.
- UK Trade wine sales up 25% to £1,685,000 (H1 2022: £1,346,000), with number of key partnerships established with prestigious, high-volume hotel and restaurant groups underpinning this performance.
International wine sales:
- International sales declined by 7%, due to the timing of export orders. Gusbourne's ongoing success in international markets generally involves large orders, the timing of which can distort short term sales trends as they have in H1. The fall in sales was caused by high levels of existing stock in two of our larger markets at the start of 2023. Stock depletions and sales are expected to grow in H2 as trade phasing normalises, with full year revenue expected to provide double digit growth. Gusbourne has now increased its distribution to over 33 international markets.
Strong financial performance
- Gross margin improved significantly to 68.3% (H1 2022: 59.9%), reflecting improved price and sales mix dynamics, in line with the Group's premium positioning and product strategy, as well as a decreased mix in H1 of International sales that are at a lower margin.
- Adjusted EBITDA loss narrowed to £0.58m (H1 2022: £0.70m).
- Net debt of £15.2m, (H1 2022 £10.3m), the increase since 30 June 2022 reflecting further investment in inventory and the capital expenditure in land, acquired in August 2022.
Further critical acclaim for and expansion of the Gusbourne portfolio
- Several new wines introduced during the period, including the limited-edition single vineyard sparkling wines, a sweet wine and a still rosé.
- In the H1, the Company received over 30 awards for its wines, including:
- 11 awards, including five golds, and four trophies; best sustainably produced wine, best Chardonnay, top still wine and retaining Estate Winery of the Year for the third consecutive year at the Wine GB awards; and
- Seven medals, including a gold and winner of best in show "Blanc de Blancs" for the 2018 vintage at the Decanter World Wine Awards; and
- Three medals at the Texsom Awards in the USA, including Judges' Selection, Platinum and Gold; and
- Two medals at the International Wine Challenge
- Exclusive partner for The Royal Collection Coronation English Sparkling Wine
2023, another promising vintage and new Head Winemaker appointed
- The 2023 harvest is now underway and is expected to be a bumper harvest in volume and quality.
- Appointment of Mary Bridges as our Head Winemaker, promotion of Alistair Benham to Head of Wine Operations and Tom Jones to Winemaker. Together these individuals have been with Gusbourne for more than 15 years and their promotions are the result of long term succession planning.
Read the full announcement here.
For further information contact:
Enquiries:
Gusbourne Plc
Katharine Berry
+44 (0)12 3375 8666
Panmure Gordon (UK) Limited (Nomad and Sole Broker)
Hugh Rich / James Sinclair-Ford
+44 (0)20 7886 2500
Media:
Houston
Kate Hoare / Ben Robinson / India Spencer
gusbourne@houston.co.uk
+44 (0)20 4529 0549
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.