UK's Chapel Down H1 revenue rises 19%, margins improve

By Reuters News


Overview

  • UK sparkling wine maker's H1 net sales revenue rose 19% yr/yr on broad-based growth

  • Adjusted EBITDA for H1 climbed 27% as gross margin improved by 3.5 percentage points

  • Company expects FY26 adjusted EBITDA to be at least 10% above prior market expectations


Outlook

  • Chapel Down expects FY26 Adjusted EBITDA to be at least 10% above market expectations

  • Company anticipates FY26 net debt will be lower than market expectations

  • 2026 harvest expected to be high quality but yield about 10% below five-year average


Result Drivers

  • PREMIUMISATION - Co said increased mix of Traditional Method Sparkling wines and sales from vintages with lower COGS drove gross margin improvement

  • CHANNEL EXPANSION - Broad-based revenue growth across Off-Trade, On-Trade, and International channels, with US market driving 66% international sales growth

  • MARKETING INVESTMENT - Increased marketing spend reinforced brand leadership and supported market share gains in key channels


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

GBP 9.43 mln

H1 Gross Margin

49.60%

H1 Gross Profit

GBP 4.67 mln


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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