This announcement contains inside
information for the purposes of the retained UK version of the EU
Market Abuse Regulation (EU) 596/2014 ("UK MAR").
Chapel Down Group
Plc
('CDG' or 'the Company')
EPIC: CDGP
UNAUDITED TRADING STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
Chapel Down, England's leading and
largest winemaker, is pleased to provide an unaudited trading
update for the year ended 31 December 2024, with net sales revenue
in line with guidance and strong sales momentum in H2. The Group
expects to report:
Highlights
|
|
2024
|
2023
|
Change
|
2024
H2
|
2023
H2
|
Change
|
|
Gross sales revenue (GSR)
|
£19.8m
|
£20.1m
|
-1%
|
£11.4m
|
£10.8m
|
+5%
|
|
Duty
|
(£2.6m)
|
(£2.2m)
|
+16%
|
(£1.5m)
|
(1.2m)
|
+22%
|
|
Net sales revenue - gross of
retro
|
£17.3m
|
£17.9m
|
-4%
|
£9.9m
|
£9.6m
|
+3%
|
|
Retro
|
(£0.9m)
|
(£0.7m)
|
+28%
|
(£0.6m)
|
(0.4m)
|
+62%
|
|
Net
sales revenue - net of retro (NSR)
|
£16.3m
|
£17.2m
|
-5%
|
£9.2m
|
£9.2m
|
+1%
|
|
NSR ex Spirits
|
£16.2m
|
£16.6m
|
-3%
|
£9.2m
|
£8.8m
|
+4%
|
|
·
|
Chapel Down sales net of duty and
retro (NSR) are expected to have reduced by 5% during the year to
£16.3m (2023: £17.2m), in line with guidance. Excluding the exited
Spirits business, NSR is -3%.
|
|
·
|
Chapel Down showed good sales
momentum in H2 (H2 NSR +1%, +4% ex-Spirits), with particularly
strong trading over the Christmas period (Q4 NSR +7%, +10%
ex-Spirits)
|
|
·
|
Strong performances in eCommerce
(+22%) and the On-trade (+16%) offset by NSR decline in the
Off-trade (-19%) due to the previously reported one-off reductions
in stock held by retailers during H1. Sales to consumers in the
Off-trade, continued to show growth throughout the year1
(FY +2%, Q4 +25%).
|
|
·
|
Chapel Down remains the leading
brand in English wine with continued growth in
Awareness2 (42%), Affinity2 (25%) and
Penetration2 (17%), higher than any other English wine
brand.
|
|
·
|
The Company recorded net debt of
£9.2m after planting 118 acres of new vines taking total acreage to
1,024 (c10% of the UK's total) and also increased stock levels
after the exceptional 2023 harvest, which underpins future growth.
The company retains significant headroom on its £20m revolving
credit facility.
|
|
·
|
As announced on 13th
December 2024, James Pennefather joins as Chief Executive Officer
on 1st February 2025.
|
Andrew Carter, Chapel Down CEO,
commented:
"2024 was a year of continued strong
consumer demand for Chapel Down's award-winning wines, as well as
significant strategic and operational progress for the Company.
Chapel Down enjoyed strong growth in its direct-to-consumer
channels, maintained its market leadership in the critical
Off-trade, with strong sales momentum across our channels in H2,
accelerating in the all-important final quarter.
Chapel Down continues to consolidate
its position as the leading English winemaker, with the strongest
brand metrics and the deepest distribution in English wine. The
exceptional quality of our wines was recognised in 2024 with some
of the industry's most prized awards, including 'best in show' at
the global Decanter awards for our Sparkling Rosé and Wine GB's
'Supreme Champion' with Kit's Coty Coeur de
Cuvee 2016.
"As I reflect on my time at Chapel
Down, our fantastic team can take great pride in what we have
achieved. Chapel Down has a renewed focus on our market leadership
of the growing English wine region. We have invested to grow our
vineyards to over 1,000 acres, c10% of the UK's total, we have
developed our premium sparkling wine brand, grown the broadest and
deepest distribution base and created a single business platform to
support future growth. Under the new leadership of James
Pennefather, the Board's confidence in the future growth of both
Chapel Down and English wine is as strong as ever."
Trading
performance
Company
sales
|
·
|
Chapel Down sales net of duty and
retro (NSR) are expected to have reduced by 5% during the year to
£16.3m (2023: £17.2m)
|
|
|
o Strong performances in the On-trade (+16%) and eCommerce
(+22%)
|
|
|
o Offset by NSR decline in the Off-trade (-19%)
|
|
|
§ Significant reduction in stock held by retailers in H1,
impacted sales by c£1m for the full year, which we do not expect to
recur.
§ Nielsen1 data shows +2% sales to consumer growth in
the year for Chapel Down in the Off-trade.
|
|
·
|
Chapel Down has good sales momentum
from trading in H2, particularly over Black Friday and the
Christmas period.
|
|
|
o H2
showed +1% NSR growth to £9.2m (H2 2023: £9.2m)
|
|
|
o NSR
growth accelerated in Q4 with +7% growth to £5.7m (Q4 2023:
£5.4m)
|
|
·
|
Excluding the now exited Spirits
business, the full year NSR decline reduced to -3% (NSR 2024:
£16.2m, 2023: £16.6m) and the Company showed +4% H2 NSR growth,
accelerating to +10% in Q4
|
Channels and
Products
|
·
|
Chapel Down continues to benefit
from the industry's broadest distribution and expects to
report.
|
|
|
o Continued strong consumer demand driving +22% growth in
eCommerce revenues to £3.8m (2023: £3.1m) and overall DTC growth of
13% to £6.4m (2023: £5.7m).
|
|
|
o On-trade revenue growth at +16% to £2.5m (£2.1m) as Chapel
Down continued to enjoy a strong rate of sale and secure key
distribution wins (outlets +25% to 2,462), including The Langham,
and extended partnerships with Greene King and Mitchells &
Butler, among others.
|
|
|
o Off-trade remains Chapel Down's largest channel with strong
sales to consumers and H2 momentum being offset by previously
reported one-off impacts of reductions in stock held by retailers
in H1.
|
|
|
§ NSR -19% to £6.8m (2023: £8.4m), however, sales to consumers
through the Off-trade1 continued their growth in 2024
(+4% Sparkling, +2% overall) with particular momentum in the
Christmas period (+38% Sparkling, +29% Overall).
§ Chapel Down maintained market leadership in the Off-trade in
2025 with its 34% market share1.
§ Overall statutory sales growth in 2024 was materially impacted
by both the Coronation being in the comparative period and
retailers significantly reducing their stockholdings in H1, as
referenced above.
|
|
|
o International NSR was 10% lower at £0.7m, (2023:
£0.8m)
|
|
|
§ Primarily driven by a decline in Export sales. Chapel Down is currently reviewing a range of options to optimise
distribution in export markets.
§ Global Travel Retail +33% year on year growth. Chapel Down is
now listed in 35 key UK travel hubs including Heathrow, Gatwick,
London City, Luton and Manchester airports (2023: 13
locations).
§ International remains a significant future growth opportunity
for the company.
|
|
·
|
Sparkling wine remains our strategic
focus and was 70% of wine sales in 2024 (2023: 74%). Chapel down
sales by category are expected to show that:
|
|
|
o Sparkling wine NSR was £10.6m (2023: £11.4m), primarily due to
one-off challenges in the Off-trade, as referenced above. In the
Off-trade1, Chapel Down Sparkling wines (+4%) outgrew
English sparkling wine as a category (+2%) and Champagne
(-2%).
|
|
|
o Still wine NSR grew 22% to £3.1m (2023: £2.5m), due to
customer demand, increased distribution and a planned RRP reduction
in 2024.
|
|
|
o A
Touch of Sparkle (ATOS) NSR showed a slight decline to £1.3m (2023:
£1.4m). ATOS classic was relaunched, under a new label consistent,
with ATOS Rosé, in Q4.
|
|
|
o Chapel Down fully exited Spirits in the year, reflected in
sales of £0.2m (2023: £0.6m)
|
|
·
|
Sparkling average selling price
(ASP) grew 5% showing continued brand strength and consumer demand
but was offset by planned RRP reductions in Still (-9%) and ATOS
(-4%) leaving blended ASP -4%.
|
Financial
|
·
|
The Company recorded net debt of
£9.2m (2023: £1.2m). Increased net debt was after:
|
|
|
o Planting 118 acres (48 hectares) at our new Buckwell vineyard.
Chapel Down's total planted vineyards now extend to 1,024 acres
(414 hectares), c10% of all UK planted vineyards.
o Stock growth of c£4m, which underpins future growth, primarily
as a result of the exceptional 2023 Harvest.
o The
Company retains significant headroom on its RCF of £20m.
|
Note
1:
|
·
|
Consumer sales in Off-trade for 52
weeks to 28th December - Chapel Down +2%, Chapel Down
Sparkling +4%. Chapel Down market share, 34%, unchanged on
PY.
|
|
·
|
Q4 consumer sales in Off-trade for
12 weeks to 28th December - Chapel Down +25%, Chapel
Down Sparkling +32%
|
|
·
|
Chapel Down sales in 4 weeks to
28th December - Chapel Down +29%, Chapel Down Sparkling
+38%
|
|
·
|
Source, Nielsen
|
Note 2:
|
·
|
Source: Savanta, BrandVue, Sparkling
Wine drinkers, MAT End December 2024
|
Contacts
|
Chapel Down Group
plc
Andrew Carter
Rob Smith
|
Chief Executive Officer
Chief Financial Officer
|
01580 763 033
|
|
|
|
|
|
Singer Capital
Markets
Shaun Dobson
Tom Salvesen
Asha Chotai
James Todd
|
Nominated Adviser and Broker
|
020 7496 3000
|
|
|
|
|
|
H/Advisors
Maitland
Sam Cartwright
Jonathan Cook
|
|
020 7379 5151
|
About Chapel
Down:
Chapel Down (AIM: CDGP) is England's
leading and largest winemaker and the power brand of English wine,
the world's newest international wine region. From its home in Kent
in the heart of the Garden of England, Chapel Down produces a range
of sparking and still wines which consistently win prestigious
international awards for their quality.
Chapel Down has over 1,000 acres of
vineyards, of which 750 acres are fully productive. Chapel Down's
status as the most recognised English wine brand is supported by
its partnerships with flagship sporting and cultural events
including Ascot, The Boat Race and Pub in the Park, and Chapel Down
is the 'Official Sparkling Wine' of the England and Wales Cricket
Board.
Chapel Down is listed on the London
Stock Exchange's AIM and has over 10,000 retail investors who enjoy
discounts on Chapel Down's wines, tours and tastings at the brand's
home at Tenterden in Kent, which each year attracts c60,000
visitors. Chapel Down is strongly committed to growing its business
in balance with the environment and sustainability is a strong,
ongoing focus. The company is a founding member of Sustainable
Wines of Great Britain and practices sustainable
viticulture
