Chapel Down Announces Interim Results 2019


Chapel Down Group PLC is pleased to announce the Company’s Interim Results for the six month period ended 30th June 2019.

Key highlights:
• Year on year combined sales up 21% to £6.744m (2018: £5.563m)*
o Chapel Down Wine and Spirits sales up 19% to £4.748m (2018: £3.981m)
o Beer and Cider sales, in Curious Drinks Limited, up 15% to £1.996m (2018: £1.735m)*
• Wines and Spirits gross profit up 26% at £1.973m (2018: £1.572m)
• Beer and Cider gross profit (in Curious Drinks Limited) up 25% at £0.680m (2018: £0.545m)
• EBITDA loss of £1.032m (2018: loss of £0.230m)** as we continue to invest in our brands, infrastructure and supply
• The extraordinary harvest in 2018 has enabled us to increase stocks by 37% to £8.256m (2018: £6.008m) reflecting the substantially higher levels of sparkling stock
• A Platinum medal and “Best in Show” at The Decanter World Wine 2019 Awards for our Kit’s Coty Coeur de Cuvee 2014 and our Kit’s Coty Chardonnay 2016 along with Golds for both wines at The International Wine Challenge 2019 Awards. Our Kit’s Coty Bacchus 2017 also won a Platinum medal at The Decanter World Wine 2019 Awards
• Additional 154 acres of new vineyards planted on outstanding chalk terroir on the North Downs in Kent close to our Kit’s Coty vineyard
• Our Bacchus Gin won Gold at The Gin Masters 2019 and our Chardonnay Vodka a Gold in The Vodka Masters 2019 in addition to the D&AD packaging award.
• Brewery build completed and opened to the public from 10 May 2019 with first trial brews commenced on 19 June and first commercial brews on 24 June 2019 with full brewing capacity available from Q4
• Stop Press – Curious Brewing won UK Brewer of the Year 2019

Frazer Thompson, Chief Executive, said:

“We operate in a highly competitive and challenging marketplace where change is a constant. We are seeing considerable change in grocery and off license retailing and the challenges on the High Street and in Casual dining are, if anything, increasing. We continue to see pubs and restaurants closing. The current market uncertainty means that we can see there is more change to come. At Chapel Down we believe that we must continue to provide consumers with more innovation and more excitement and provide our trade customers with more opportunity for premium pricing and great value from excellent brands than ever before.

Our focus remains delivering solid top line growth at good margins whilst we continue to invest ahead to ensure we continue to build strong and sustainable brands that our consumers and customers love. Brands that are relevant with which they can engage and that provide memorable experiences. To help us do that, we have invested in creating a Gin Works at Kings Cross and a modern visitor experience at our new brewery to complement the existing Vineyard at Tenterden.

It is encouraging that interest in English wines – and Chapel Down in particular – continues to grow. Awareness of English sparkling wine has grown to 78% with Chapel Down the “most powerful English sparkling wine brand in the UK” (Source: Sparkling Wine in the UK Market Report, Wine Intelligence, August 2019). Our strong and sustained programme of high profile marketing investment has enabled us to continue to improve our pricing and improve our margins with sales up 19% and gross profit up 26%. And interest is not just from the UK, but increasingly in sophisticated wine markets internationally as news of the excellence of our wines spreads. We believe we have a distinctive and compelling proposition to offer the traditional champagne export markets.