Naked Wines has reported trading 'in line with guidance' in the first half of its financial year to 30 September 2024.
Strategic initiatives implemented by the company are progressing according to plan and generating learnings, the company added.
Rodrigo Maza, CEO, said, “Naked Wines is in a better position, both financially and strategically. We now have robust financial foundations, and our members remain loyal and engaged.
"Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period.”
First-Half Highlights
The company's liquidity continued to improve during this period and was slightly ahead of its target.
Net cash for the first half increased by £20.1 million (€24.4 million) compared to the year-ago period to £22.9 million (€27.8 million), driven by stock reductions.
Revenue for the period declined to £112.3 million (€136.4 million), while adjusted EBIT excluding inventory liquidation and associated costs amounted to £0.6 million.
Adjusted EBIT declined by £5.3 million, reflecting and positive £2.9 million of G&A savings from reorganisation in the previous financial year.
In November of this year, the company appointed Dominic Neary as its new chief financial officer, succeeding James Crawford, who stepped down in June.
Neary brings significant experience at international high-growth consumer, digital and FMCG companies.
Maza welcomed Neary and added, “His experience in digital and international businesses has helped him quickly transition, and I look forward to working with him as we focus the business on cash, profitability and growth.”
Outlook
Following early signs of solid trading in the peak season, Naked Wines has forecast FY25 performance to be in line with its previous guidance.
US inventory, while in line with previously communicated plans, remains overstocked and the company is reviewing options to release capital from inventory.
The company added that it is conducting a performance review and evaluating options to maximise shareholder value. It will provide a report back by the end of its financial year.
