Unaudited Trading Statement ended 31/12/2024

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	2024	2023	Change	2024 H2	2023 H2	Change
Gross sales revenue (GSR)	£19.8m	£20.1m	-1%	£11.4m	£10.8m	+5%
Duty	(£2.6m)	(£2.2m)	+16%	(£1.5m)	(1.2m)	+22%
Net sales revenue - gross of retro	£17.3m	£17.9m	-4%	£9.9m	£9.6m	+3%
Retro	(£0.9m)	(£0.7m)	+28%	(£0.6m)	(0.4m)	+62%
Net sales revenue - net of retro (NSR)	£16.3m	£17.2m	-5%	£9.2m	£9.2m	+1%
NSR ex Spirits	£16.2m	£16.6m	-3%	£9.2m	£8.8m	+4%

·	Chapel Down sales net of duty and retro (NSR) are expected to have reduced by 5% during the year to £16.3m (2023: £17.2m), in line with guidance. Excluding the exited Spirits business, NSR is -3%.
·	Chapel Down showed good sales momentum in H2 (H2 NSR +1%, +4% ex-Spirits), with particularly strong trading over the Christmas period (Q4 NSR +7%, +10% ex-Spirits)
·	Strong performances in eCommerce (+22%) and the On-trade (+16%) offset by NSR decline in the Off-trade (-19%) due to the previously reported one-off reductions in stock held by retailers during H1. Sales to consumers in the Off-trade, continued to show growth throughout the year¹ (FY +2%, Q4 +25%).
·	Chapel Down remains the leading brand in English wine with continued growth in Awareness² (42%), Affinity² (25%) and Penetration² (17%), higher than any other English wine brand.
·	The Company recorded net debt of £9.2m after planting 118 acres of new vines taking total acreage to 1,024 (c10% of the UK's total) and also increased stock levels after the exceptional 2023 harvest, which underpins future growth. The company retains significant headroom on its £20m revolving credit facility.
·	As announced on 13^th December 2024, James Pennefather joins as Chief Executive Officer on 1st February 2025.

·	Chapel Down sales net of duty and retro (NSR) are expected to have reduced by 5% during the year to £16.3m (2023: £17.2m)
	o Strong performances in the On-trade (+16%) and eCommerce (+22%)
	o Offset by NSR decline in the Off-trade (-19%)
	§ Significant reduction in stock held by retailers in H1, impacted sales by c£1m for the full year, which we do not expect to recur. § Nielsen¹ data shows +2% sales to consumer growth in the year for Chapel Down in the Off-trade.
·	Chapel Down has good sales momentum from trading in H2, particularly over Black Friday and the Christmas period.
	o H2 showed +1% NSR growth to £9.2m (H2 2023: £9.2m)
	o NSR growth accelerated in Q4 with +7% growth to £5.7m (Q4 2023: £5.4m)
·	Excluding the now exited Spirits business, the full year NSR decline reduced to -3% (NSR 2024: £16.2m, 2023: £16.6m) and the Company showed +4% H2 NSR growth, accelerating to +10% in Q4

·	Chapel Down continues to benefit from the industry's broadest distribution and expects to report.
	o Continued strong consumer demand driving +22% growth in eCommerce revenues to £3.8m (2023: £3.1m) and overall DTC growth of 13% to £6.4m (2023: £5.7m).
	o On-trade revenue growth at +16% to £2.5m (£2.1m) as Chapel Down continued to enjoy a strong rate of sale and secure key distribution wins (outlets +25% to 2,462), including The Langham, and extended partnerships with Greene King and Mitchells & Butler, among others.
	o Off-trade remains Chapel Down's largest channel with strong sales to consumers and H2 momentum being offset by previously reported one-off impacts of reductions in stock held by retailers in H1.
	§ NSR -19% to £6.8m (2023: £8.4m), however, sales to consumers through the Off-trade¹ continued their growth in 2024 (+4% Sparkling, +2% overall) with particular momentum in the Christmas period (+38% Sparkling, +29% Overall). § Chapel Down maintained market leadership in the Off-trade in 2025 with its 34% market share¹. § Overall statutory sales growth in 2024 was materially impacted by both the Coronation being in the comparative period and retailers significantly reducing their stockholdings in H1, as referenced above.
	o International NSR was 10% lower at £0.7m, (2023: £0.8m)
	§ Primarily driven by a decline in Export sales. Chapel Down is currently reviewing a range of options to optimise distribution in export markets. § Global Travel Retail +33% year on year growth. Chapel Down is now listed in 35 key UK travel hubs including Heathrow, Gatwick, London City, Luton and Manchester airports (2023: 13 locations). § International remains a significant future growth opportunity for the company.
·	Sparkling wine remains our strategic focus and was 70% of wine sales in 2024 (2023: 74%). Chapel down sales by category are expected to show that:
	o Sparkling wine NSR was £10.6m (2023: £11.4m), primarily due to one-off challenges in the Off-trade, as referenced above. In the Off-trade¹, Chapel Down Sparkling wines (+4%) outgrew English sparkling wine as a category (+2%) and Champagne (-2%).
	o Still wine NSR grew 22% to £3.1m (2023: £2.5m), due to customer demand, increased distribution and a planned RRP reduction in 2024.
	o A Touch of Sparkle (ATOS) NSR showed a slight decline to £1.3m (2023: £1.4m). ATOS classic was relaunched, under a new label consistent, with ATOS Rosé, in Q4.
	o Chapel Down fully exited Spirits in the year, reflected in sales of £0.2m (2023: £0.6m)
·	Sparkling average selling price (ASP) grew 5% showing continued brand strength and consumer demand but was offset by planned RRP reductions in Still (-9%) and ATOS (-4%) leaving blended ASP -4%.

·	Consumer sales in Off-trade for 52 weeks to 28^th December - Chapel Down +2%, Chapel Down Sparkling +4%. Chapel Down market share, 34%, unchanged on PY.
·	Q4 consumer sales in Off-trade for 12 weeks to 28^th December - Chapel Down +25%, Chapel Down Sparkling +32%
·	Chapel Down sales in 4 weeks to 28^th December - Chapel Down +29%, Chapel Down Sparkling +38%
·	Source, Nielsen

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