Today’s YE update is excellent, with stellar growth of 53% in the higher margin sparkling wine category the stand out feature. Good progress is evident across all trade channels, market share is higher and momentum going into 2023 is strong. In short, new management is building a track record of delivery against the sparkling wine / premiumisation led strategy. English sparkling wine is in structural growth, benefiting from an improved maritime climate, international recognition and investment. Chapel Down is an attractive way to play this theme - market leader, profitable and ungeared. The FY22 outcome is supportive of the target to double net sales by FY26. We back the team and are positive on superior growth prospects. Today’s update builds on the positive harvest news in October and should be well received.
