Online wine retailer Virgin Wines UK (VINO) has issued a trading update for its year ended 30th June 2022 emphasising “a strong, stable and resilient business model, coupled with disciplined customer acquisition, that delivers market leading profitability”. So why are the shares currently down a further more than 7.5% to 67p on the announcement?
Hello Share Swallowers. This old punter stopped drinking a few years ago. But I still hanker after a glass of red wine. Beer I’m happy to forget. I merely follow a national trend. Wine drinking is going up among Brits and ale is on a decline. Proving that there’s a growing move towards el vino is Virgin Wines (VINO).
Online wine retailer Virgin Wines UK (VINO) has made a trading update including noting “customers acquired during the Covid lockdown period continue to perform strongly. We were delighted to ship more than 7 million bottles of wine during the period and to deliver sizeable growth in our customer base with strong levels of customer conversion and retention… net cash balance of £13.6m at 31 December 2021”. So then why a current share price of 155p, down 22.5%!?
After its listing at the start of March, how do I feel about Virgin Wines (VINO)? As I discussed back in February HERE, I was not impressed observing that ‘many market investors today are highly excited by online retailers and hence a bunch of new IPOs are on the runway on big multiples of earnings or sales’. So having had an opportunity to listen to the company’s presentation, have I changed my mind?
