Sales fall flat at Chapel Down despite strong Christmas

(Sharecast News) - English winemaker Chapel Down reported a dip in full-year sales on Thursday, but said momentum had gathered pace during the second half.

Updating on trading, the AIM-listed business said net sales revenue (NSR) in the year to 31 December fell 5%, in line with expectations, to �16.3m.

It noted there had been good sales momentum in the second half, however, including "particularly strong" Christmas trading.

During the year, on-trade sales rose 16% while e-commerce jumped 22%. However, partially offsetting that was a 19% slump in off-trade NSR.

Chapel Down said there had been a "significant" reduction in stock held by retailers in the first half, which took around �1m off full-year sales but is not expected to recur.

Andrew Carter, outgoing chief executive, said: "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."

Carter announced in September that he was leaving to join brewer Timothy Taylor after three years in the role. He is being replaced by James Pennefather, who joins on 1 February.

Founded in 2002, Kent-based Chapel Down has 1,024 acres of vineyards - around 10% of the UK's total. It planted 118 acres during the year, which saw net debt soar to �9.2m from �1.2m as at the end of 2023.

As at 1115 GMT, shares in Chapel Down were up 2% at 37.15p.