For the year ended
Revenue for the year from the 206
Majestic also said that an increase in distribution costs associated with its ongoing roll-out of its store estate, also took a toll on profits.
The company declared a total dividend for the year of
"Majestic made good operational progress in the last year and despite the difficult trading environment delivered a solid performance," said Chief Executive
Majestic Wines said active customers who made purchases during the year rose 2.9% to 643,000, while the average spend per transaction increased slightly to
It said it saw big sales increases of rosÉ from Provence, and of malbec from
Shares in the retailer tumbled almost 20% back in March, when the company said that it was expecting flat pretax profit and like-for-like sales for the recent financial year, and said it expects investments in the new year to dent its profits even further.
The wine retailer said that as part of its plans to increase its store footprint to over 300 and expand its e-commerce operations, it will invest in "necessary infrastructure enhancements", including new office space, a larger more efficient distribution facility to handle higher volumes, and establishing its own in-house e-commerce development team.
The group warned that the big investments will hit profits in the short term with flatter profit growth in the current 2015 financial year, and said it expects to return to further profit growth from financial 2016 onwards as its benefits from the investment programme.
Financial "2015 will be a year of increased investment for Majestic to ensure that we have the right infrastructure to maximise on our long-term opportunities for future growth," said Lewis.
During the year the company opened 13 new stores, slightly less than the prior year. At the end of June, the company said it will be relocating its distribution centre to a modern and larger facility.
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