Virgin Wines has returned to profit its 2024 financial year, as its cost-cutting scheme boosted margins and delivered savings.

The wine retailer posted a pre-tax profit of £1.7m in the year ending 28 June, up from a loss of £700,000 last year, despite its total sales remaining firm at £59m.

Following its cost-cutting drive, £1.4m of savings were made over the year. The cost per customer acquisition fell to £19.62 compared to £19.91 in 2023, and its fulfilment costs dropped to 11.8% of its sales, compared to 14% in 2024.

Virgin Wines chief executive Jay Wright said: “We are delighted to reiterate a positive full-year performance, with strong profitability.

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“Despite a tough consumer backdrop, we are pleased to have increased new customer conversion rates, lowered cancellation rates and delivered a competitive cost per acquisition.

“We have also introduced several strategic initiatives to enhance our growth and are particularly encouraged by the initial results of our Warehouse Wines offering as well as the Vineyard Collection and Five O’clock Somewhere Wine Club.”

The CEO added that looking ahead to 2025, it expects first quarter trading results to be “in line with our expectations” and deliver a “strong outturn”.

Virgin Wines last month launched a new strategic partnership with Ocado, to offer the online supermarket’s customers an “exclusive collection” of 50 wines from its portfolio.