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On Wednesday, Chapel Down experienced a significant decline in its share value following the announcement of a leadership change and a decrease in first-half profits and revenue.
Andrew Carter, the company's Chief Executive Officer, has resigned to take on the role of CEO at Timothy Taylor & Co Ltd starting next year. Chapel Down stated that a search for a new CEO will commence "shortly," and Carter will remain with the company to ensure a smooth transition until the first half of next year.
The announcement was accompanied by Chapel Down’s financial results for the six months ending on 30 June. The company reported an 11% decrease in net sales revenue, totaling £7.1 million. This decline was attributed to a weaker performance in the off-trade sector, where sales dropped by 36%. The off-trade slump was mainly due to one-off factors, including fluctuations in retailers' stock holdings, which overshadowed strong results in the direct-to-consumer, on-trade, and export segments.
Adjusted earnings before interest, tax, depreciation, and amortisation saw a substantial reduction of 58%, falling to £1.36 million. Despite these challenges, Chapel Down remains a leader in the English wine industry, known for its prominent brand and celebrated wines. Carter noted that the company continued to make strategic and operational progress throughout 2024, particularly in its on-trade, export, and direct-to-consumer channels, reflecting strong consumer demand.
The share price of Chapel Down fell sharply by 14%, trading at 60p as of 0945 BST, in response to the combined impact of the leadership transition and the financial performance report. The company’s ongoing efforts to address the challenges in the off-trade sector and the leadership change will be closely watched as Chapel Down navigates this period of transition and seeks to sustain its market position.
