Majestic Wine toasts 20% profit hike

Wine merchant Majestic Wine reported a 20% increase in half year profit, helped by soaring sales of wines over £20 a bottle.

Pre-tax profit increase to £8.8m in the year to 26 September from £7.3m in 2010. Half-year revenues increased 9% to £127.8m.

Like for like sales in UK retail stores rose 2.7%, excluding VAT.

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The wine warehouse group said sales of still wine priced at £20 per bottle and above increased by 20% and now represent 5.5% of UK retail sales. The group has increased the number of stores that sell expensive 'fine wines' to 122 from 96 the same half a year earlier.

Total sales were up 8.7% to £127.8m while online sales increased 8.7% on last year. Internet sales now represent 9% of UK retail sales.

Majestic, which opened eight new stores opened in the period and three since end of September, also saw a 7.7% increase in active customers to 534,000.

Lay & Wheeler, its fine wine specialist, recorded profit before interest and tax of £292,000 up from £77,000 before. Majestic in France posted profit before interest and tax of £658,000 from £574,000 in 2010.

In the six weeks from 27 September to 7 November 2011, like for like sales in our UK stores down 1.1% with total UK store sales up 3.8%.

The interim dividend increased 15.2% to 3.8p per share.

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cj