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(Sharecast News) - Wine maker Chapel Down lifted its full-year profit expectations on Wednesday after a continued strong performance in the third quarter.
Also citing confidence in trading plans for the fourth quarter, the company said it now expects FY26 adjusted earnings before interest, tax, depreciation and amortisation to be "materially" ahead of market expectations of £3.7m. Net debt is expected to be lower than market expectations.
In the first half, net sales revenue rose 19% on the same period a year earlier to £9.4m, with broad-based growth across all channels. Net sales in Off-Trade and On-Trade were up 18%, supported by strong spring and summer campaign activations, while the international segment saw a 66% increase, driven by performance in the US market.
Adjusted EBITDA ticked up 27% to £1.3m.
Chief executive James Pennefather said: "The continued momentum seen during the first half of the year reinforces our confidence in the long-term opportunity for Chapel Down in this exciting growth category. English Sparkling Wine continues to benefit from positive tailwinds including adoption of the category by millennials, expansion of demand outside traditional formal Champagne occasions and the impact of a warmer climate.
"We are delighted with the continued progress our team has made during the first half of the year. We have seen growth across all channels, increasing market share and continued momentum in our strategic Traditional Method Sparkling portfolio which demonstrate the benefits of the investments we have made in the Chapel Down brand, our routes to market and our asset base."
At 0813 BST, the shares were up 12% at 51.48p.
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