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Virgin Wines lowered its guidance on profit as labour shortages and rising costs dampened the growth outlook.
Due to the uncertain trading and macro environment, coupled with numerous headwinds in relation to increased cost pressure, the company said it now expected revenue and profit for the year ending June 2022 to be 'slightly below' consensus market estimates.
The dire guidance arrived alongside first-half results showing a jump in revenue, led by a rise in subsriptions and better-than-expected demand from its flagship Winebank service.
For the six months ended 31 December 2021, revenue rose 55% to £40.5 million year-on-year, with repeat sales from core channels growing 6.2% to £29.6 million.
'The gorup has continued to deliver excellent growth across its subscription schemes, with customers on its flagship WineBank service performing ahead of expectations, delivering a 28% increase in revenue,' the company said.
'The group's subscription schemes are a key driver of its direct-to-consumer sales channel which represented 82% of total group revenue in the period.'
'Total subscription revenue accounted for 79% of D2C sales in the period, up from 69% in H1 2021.'