Majestic Wine (WINE)

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Majestic Wine WINE Logo

A leading wine specialist operating in four separate divisions – Majestic Retail, Naked Wines, Majestic Commercial and Lay and Wheeler.

23-Nov-2017 – 383.25p – £272.8m – PER 19.5

Results For The 6 Months To 2nd October 2017 – “Ready to accelerate growth” – Adjusted PBT up£6.7m to £6.8m from breakeven in H1 2017, Sales up 4.2% and on track to hit £500m by 2019. The Interim dividend is up 33.3% to 2.0p per share.

This is what puts my simple brain off this company – “Ready to accelerate growth”, on track to hit £500m in Revenue by 2019. Let’s look at Revenue on Stockopedia… 2015 – 2017 was £284.5m up to £465.4m and 2017 – 2019 is now forecast to be £465.4m to £516.7m. Now, this accelerated growthmay be related to the very poor Operating Margin or ROCE, I don’t know and I could be wrong. But as on track to hit £500m in Revenue by 2019 was mentioned I assumed the acceleration referred to Revenue.

9-Jan-2018 – 459p – £328.0m – PER 22.7

Christmas Trading Statement – LFL sales up 3.2% (10 week period to end 1-Jan-2018). Remain on track to hit £500.0m in sales by 2019.

I still can’t get excited here. And, they’re still banging on about £500m in Revenue by 2019, why? It’s only 10% higher than 2017 Revenue – The PER is 22.7!

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