Naked Wines generated revenue of approximately £290 million (€339.3 million) in the 52 weeks ended 1 April 2024, according to a pre-closing trading update issued by the company.
Naked Wines added that the performance was in line with its guidance, representing a 13% decline compared to revenue of £333 million (€389.6 million) in FY2023.
However, this was an improvement on the 18% decline reported in the first half of FY24.
Adjusted EBIT amounted to around £5 million (€5.9 million), or at the upper end of its guidance range of £2 million to £6 million (€2.3 million to €7 million).
The company expects a statutory operating loss in the range of £13 million to £18 million (€15.2 million to €21.1 million) for the full financial year.
A 'Leaner And Stronger' Business
Chief executive of Naked Wines, Rodrigo Maza, commented, "These results demonstrate the continued progress that is being made to make the business leaner and stronger.
"With higher levels of cash, a moderating decline in sales and demonstrable underlying profitability, we have a strengthening platform from which to build as we continue to drive towards profitable growth."
Net cash for the financial year amounted to £20 million (€23.4 million), above the guidance range of £5 million to £15 million (€5.9 million to €17.6 million).
The company also reported progress in the reduction of operating G&A costs as well as inventory, with both down 11%.
Analyst Comment
According to analysts at Liberum, the trading update provides reassurance that the group’s plan to reset its cost base has stuck, but expects sales to contract further in FY25.
'For now, there is still a lack of clarity on what the right 'smaller' size of the business is or will be, but management is adamant that they can still be profitable at sales of £250 million,' the analysts noted.
Naked Wines will release audited results for FY24 in July.
