Unaudited Trading Statement period ended 31/12/25
Chapel Down Group plc has announced unaudited results for the year ended 31 December 2025, with Net Sales Revenue expected to reach £19.4 million, a 19% increase and slightly ahead of guidance, driven by strong performance in off-trade and international channels. Adjusted EBITDA is projected to be between £4.0 million and £4.5 million, exceeding market expectations due to improved profitability and a higher-than-anticipated fair value adjustment to biological produce, supported by a high-quality harvest yield. The company dispatched over one million bottles of Traditional Method Sparkling wines for the first time, and net debt stands at £12.4 million, reflecting investments in new vines and maturing stock.
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Chapel Down, England's leading and largest winemaker, is pleased to provide an unaudited trading update for the year ended 31 December 2025 (FY25).
As a result of strong Christmas trading, Net Sales Revenue (NSR) is expected to be slightly ahead of guidance1 at £19.4m.
Furthermore, the Board now expects Adjusted EBITDA to be in the range of £4.0m - £4.5m, ahead of market expectations. This is primarily driven by an improvement in underlying profitability, whilst the Fair Value adjustment to Biological Produce is also expected to be slightly higher than market expectations, supported by a high quality and above-average harvest yield.
The Group expects to report:
| £'000 | FY25 | FY24 | Change % |
|---|---|---|---|
| Net Sales Revenue by Channel | |||
| Off-trade | 9,371 | 6,790 | +38% |
| On-trade | 2,575 | 2,460 | +5% |
| International | 1,018 | 684 | +49% |
| Ecommerce | 3,860 | 3,755 | +3% |
| Retail, Tours & Events | 2,216 | 2,241 | -1% |
| Other Sales and Income | 403 | 421 | -4% |
| Total Net Sales Revenue | 19,443 | 16,351 | 19% |
| Of which Direct-to-Consumer | 6,404 | 6,331 | +1% |
| Net Sales Revenue by Product Category | |||
| Traditional Method Sparkling wine | 13,557 | 10,582 | +28% |
| Still and other wines | 4,739 | 4,460 | +6% |
| Total Net Sales Revenue (Wine) | 18,296 | 15,042 | +22% |
| Non-wine sales | 1,147 | 1,309 | -12% |
| Total Net Sales Revenue | 19,443 | 16,351 | +19% |
| Financial Highlights | |||
| · | Chapel Down dispatched over 1m bottles in the year of Traditional Method Sparkling wines (TMS) for the first time, a key milestone as the Company delivers on its ambition to win an equivalent 1% share of the global Champagne market by 2035 2 . | ||
| · | Net Sales Revenue ("NSR") up 19% to £19.4m for the year (FY24: £16.4m), slightly ahead of guidance, with wine-related sales growth of +22%. | ||
| · | Chapel Down delivered sales growth in Off-trade (+38%), On-trade (+5%), International (+49%) and Ecommerce (+3%). Outperformance in the International channel was due to a new distribution agreement with Jackson Family Wines for the important US market; and in the UK Off-Trade channel due to new listings and well-executed promotional campaigns, as well as lapping a period of retailer destocking in FY24. | ||
| · | Chapel Down extended its clear leadership in a category which continues to grow strongly. Chapel Down now has 36% market share of the UK off-trade (FY24: 35%), and delivered Retail Sales Value growth of +16%, which was higher than the English Sparkling Wine category growth of +12% 3 . | ||
| · | The Company recorded net debt of £12.4m (FY24: £9.2m) due to costs of cultivation of 118 acres of new vines planted since 2023; and increasing maturing stock levels due to the above-average yield of the high quality 2025 harvest, both of which underpin future growth. Significant headroom on its £20m revolving credit facility remains, with an accordion option to extend the facility to £30m. | ||
| Operational Highlights | |||
| · | 2025 harvest delivered an above-average yield of high quality, meaning the Fair Value Adjustment to Biological Produce is expected to be slightly ahead of guidance. | ||
| · | Targeted marketing expenditure delivered significant growth in key brand metrics, with Awareness now at 49% (FY24: 42%), underpinning Chapel Down's position as the lighthouse brand in English wine 4 . | ||
| · | Further progress made on the Company's premiumisation strategy, with Traditional Method Sparkling wines now representing 74% of wine-related NSR (FY24: 70%). | ||
Current Trading & Outlook
Chapel Down experienced strong momentum at the end of FY25, which the Board expects to continue into FY26. The Board remains confident in the Group's significant long-term growth potential, underpinned by a clear strategic focus on brand value enhancement, sustainable channel expansion and disciplined capital management.
To build further on brand momentum in FY25, the Board has taken the decision to slightly increase marketing investment on proven growth drivers in FY26, whilst maintaining a disciplined approach to profitable growth. It is expected these initiatives will strengthen the brand, capture further market share and reinforce gross margin.
Disciplined and targeted capital allocation in prior years leaves the business well positioned for future growth. The Board will consider any requirements for additional capex if it would deliver sustained benefits and shareholder value through either increased revenue or structural production efficiencies.
James Pennefather, Chapel Down CEO, commented: "2025 performance reflects strong delivery across the Chapel Down business. In addition to exceptional topline growth of 19%, increased brand and category leadership and the delivery of a world class harvest, Chapel Down has made significant progress towards its goal to deliver sustained profitable growth in the medium-term.
In spite of continued economic pressures, consumers are continuing to find reasons to celebrate, with over one million bottles of Chapel Down Traditional Method Sparkling wines dispatched for the first time during 2025. We are seeing a generational shift into English Sparkling Wine as Millennials, who prefer a lighter, fresher, crisper style of wines, are increasingly adopting the category. Consumers are now choosing Chapel Down throughout the year and for a broader range of celebration occasions than other high value sparkling wines, which gives us a significant opportunity for future sustained topline growth. In order to further capitalise on this trend, the Board has taken the decision to slightly increase marketing investment in FY26 to build brand value, underpin premiumisation and deliver long term growth.
I would like to thank all members of our fantastic team and our partners for the significant contribution they are making to Chapel Down's progress. The Board's confidence in the future growth of both Chapel Down and English wine is as strong as ever."
Notes
1Immediately before publication of this announcement, the Board of Chapel Down believes that market expectations for the year ended 31 December 2025 were for revenues of £19.0m and Adj. EBITDA of £3.5m.
2 In 2025, 266m bottles of Champagne were shipped (Comité Champagne : Champagne: 2025 shipment review and outlook. 17 Jan 2026).
3 Source: NIQ (previously "NielsenIQ") UK Sparkling Wines - 52 w/e 27th December 2025 vs 52 w/e 28th December 2024.
4 Source: Savanta, BrandVue, Sparkling Wine drinkers, MAT end December 2025.
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