The YE update shows revenue delivered in line with expectations. The key takeaway is that positive trading momentum returned in H2, with Q4 at +10% (excluding the exited Spirits) and a bumper Christmas being stand-out features. The update also evidences healthy in-market consumer demand for Chapel Down’s sparkling wine, a 5% higher y/y ASP and market outperformance. Net, this means the company is performing well and enters 2025 with positive momentum. This is highly reassuring and provides a good base for the incoming CEO (starts 1st Feb). Overall, fundamentals of market leadership, strong asset backing, and structural growth of English sparkling wine remain strong. We leave our recently revised forecasts unchanged and maintain a Buy and TP of 57p. The shares have fallen 40% over the last 12 months and are worth revisiting for growth investors.
