Chapel Down (CDGP,) an English wine producer, has announced results today for the year ended 31 December 2022, evidencing a strong financial performance and continued strategic progress.
Full-year sales grew 10% to £15.6m, with a particularly strong H2 performance that delivered 14% growth providing "good momentum" going into 2023.
The wine producer saw strong growth in traditional method sparkling wine sales, up 53% to £9.6m with an annual record volume of 790,000 bottles sold, compared with 522,000 in 2021.
Gross margin expanded from 49% in 2021 to 55% in 2022, alongside operating profit up 51% to £1.7m. Adjusted EBITDA came in at £2.8m, up 30% year-on-year.
The company also noted solid operational progress made in 2022, planting an additional 38 acres of vines at its Boarley Farm site. Chapel Down says it will plant an additional 118 acres at the site in spring 2023, taking the company to 906 acres under vine in total, of which 750 will be fully productive in 2023.
Current trading is in line with management expectations and Chapel Down’s outlook for 2023 remains positive, expecting to deliver double-digit net sales revenue growth and sustained improvement in gross margin for the full year. The company said its 2022 harvest will provide the platform for continued growth in 2023 and beyond.
Andrew Carter, Chief Executive Officer, commented: "2022 has been a record year for Chapel Down with exceptional profitable growth delivered driven by the stellar performance of our traditional method sparkling wines, as we continue to premiumise the Chapel Down brand. The English wine industry is enjoying the fruits of its extraordinary terroir, favourable climate and sustained investment, and these advantages show no sign of abating.”
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An impressive result from Chapel Down, which has continued to position itself as market leaders in the buoyant English sparkling wine market.
The company is poised to benefit from the growth of the English wine market, which has seen exceptional progress in recent years. Approximately 11 million bottles of English wine were sold in 2022, of which 7.5 million bottles were sparkling, which represents a growth of approximately 30% year on year. In the UK, 10,000 acres of land are planted under vines according to Wine GB, more than doubling in eight years and quadrupling since 2000.
The growth of the English wine market alongside the strong financial and operational progress that Chapel Down has made demonstrates that they are set for success as the year progresses. The company continues to maintain its strong balance sheet, with net assets of £32.4m including freehold land and buildings, planted vineyards and stock. Chapel Down ains to double revenue between 2021-2026 to £28m, while setting plans in motion to deliver profitable growth beyond 2026.
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