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

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

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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.)