Chapel Down returns to profit as UK off-trade recovers

29th Apr 2026 11:03

(Sharecast News) - Wine maker Chapel Down said on Wednesday that it returned to profit in 2025 as it pointed to a strong recovery in the UK off-trade channel and "significant" momentum in the US.

In the year to the end of December, the company swung to a pre-tax profit of £469,000 from a loss of £1.4m the year before. Adjusted earnings before interest, tax, depreciation and amortisation rose 25% to £3.7m, with net sales up 19% to £19.4m.

Off-trade revenue was 38% higher at £9.4mm growing faster than the wider English sparkling wine category, while the on-trade channel saw a 5% increase to £2.6m. International sales rose 49% to £1m and direct-to-consumer revenue ticked up 1% to £6.4m.

Chapel Down put the UK off-trade recovery down to more consistent stockholding, increased distribution and "excellent execution", especially over the Christmas trading period. The company also benefited from "significant" momentum in the US through its new distribution partner.

In addition, the wine maker hailed the "exceptional quality" harvest of 2025.

Chapel Down highlighted a strong start to FY26, with trading well ahead of the same period a year earlier across all key channels and delivering gross margin improvement, in line with management expectations.

The company said FY26 results are set to be in line with market expectations for net sales revenue of £22.1m and adjusted EBITDA of £3.7m.

Chief executive James Pennefather said: "In 2025, Chapel Down delivered strong, profitable growth, comfortably in line with upgraded expectations and reinforcing our confidence in achieving our ambition of securing an equivalent 1% share of global Champagne by 2035. Our unique combination of premium vineyard and brand assets, underpinned by our high-performing and committed team, together provide a strong platform for sustained value creation.

"We continue to see significant opportunity for our brand both in the UK and internationally. This is driven by the consistently high quality of our wines, the effectiveness of our targeted marketing investment, and a generational shift as millennials increasingly embrace English sparkling wine. These dynamics position Chapel Down well for continued double-digit growth in the years ahead."

At 1100 BST, the shares were up 2.4% at 32.25p.

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