Naked Wines has reported financial progress despite a drop in sales during the first half of the year.
- The company’s pre-tax loss narrowed from £9.7m to £5.6m over the 26-week period ending 30 September.
- Despite a 15% sales decline to £112.3m, the firm continues its strategic turnaround efforts.
- A significant £3.7m inventory write-down impacted the adjusted EBIT, resulting in a £3.1m loss.
- Future expectations include an adjusted EBIT excluding inventory impacts between £3m to £8m.
Naked Wines has revealed a notable reduction in its financial losses for the half-year period, despite experiencing a decline in sales figures. The company’s pre-tax loss decreased significantly to £5.6m from the previous year’s £9.7m over the same 26-week duration ending on 30 September. This progress is attributed to the ongoing execution of their strategic plan aimed at financial recovery and growth.
The decrease in sales by 15% down to £112.3m was largely linked to a 12% reduction in active members. This drop underscores the challenges the company faces in maintaining its customer base. However, they remain committed to their turnaround strategy.
The adjusted earnings before interest and taxes (EBIT) were adversely affected by a substantial £3.7m due to inventory liquidation. This included a notable £2.5m increase to the US stock provision and £1.2m lost due to other wine liquidation costs, culminating in a £3.1m adjusted EBIT loss.
Looking forward to the future, Naked Wines anticipates delivering an adjusted EBIT excluding the effects of inventory liquidation, projected to fall between £3m and £8m. The company’s leadership remains positive, citing solid trading performance during peak seasons as evidence of their strategic initiatives’ potential impact.
Rodrigo Maza, CEO of Naked Wines, expressed confidence in the company’s direction, stating, “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.”
Naked Wines’ efforts in strategic realignment and customer focus appear to be yielding improvements, despite ongoing sales challenges.
