Virgin Wines reports revenue growth despite annual loss

Virgin Wines has returned to revenue growth, reporting a 3.4% annual increase to £61 million for the year ending July 3, 2026. This growth occurred despite a declining online drinks market and a swing to an adjusted EBITDA loss of £0.2 million, down from £2.3 million the previous year.

The company attributed the loss to increased investment in its growth strategy, a difficult consumer environment, and rising cost pressures, including alcohol duty, wages, and National Insurance contributions. Despite the bottom-line decline, the company saw an “exceptional” 41% year-on-year increase in new customer acquisition, bringing its total customer base to 148,000. Customer retention rates also improved, with sales retention reaching 92%.

Subsidiary Warehouse Wines saw a 92% revenue surge to £3.45 million. CEO Jay Wright noted that the company has entered the 2027 fiscal year with momentum, citing strong performance from commercial partnerships with Moonpig and Ocado, as well as a new mobile app. Future profitability is expected to be aided by the consolidation of logistics into a new national distribution centre in Preston.