Naked Wines reports reduced half-year losses despite a decline in sales, highlighting financial and strategic improvements.
- The company posted a pre-tax loss of £5.6 million, compared to £9.7 million from the previous year, under its ongoing turnaround plan.
- Sales fell by 15% to £112.3 million, coinciding with a 12% decrease in active members, yet strategic efforts continue.
- Chief executive Rodrigo Maza states that the company has solid financial foundations and loyal members, with positive trading during peak season.
- Forward projections indicate an adjusted EBIT excluding inventory liquidation of between £3 million and £8 million, with annual sales expected between £240 million and £270 million.
Naked Wines has reported a significant reduction in its half-year losses, showcasing an improvement in its financial and strategic position, notwithstanding a drop in sales. The pre-tax loss narrowed to £5.6 million for the 26 weeks ending 30 September, a considerable improvement from the £9.7 million loss recorded in the prior year. This positive shift is attributed to the firm’s focused turnaround plan.
Despite this financial progress, the company has seen a 15% drop in sales, falling to £112.3 million. This decrease is largely reflective of a 12% reduction in the number of active members. However, Naked Wines is addressing these challenges through strategic initiatives aimed at enhancing customer acquisition and retention.
Rodrigo Maza, the chief executive, affirms the company’s strengthened financial foundation and continued loyalty from its members. He notes that the firm is experiencing solid trading activity, particularly in the peak season, which is a promising sign of recovery. ‘We now have robust financial foundations, and our members remain loyal and engaged,’ Maza comments, emphasising the positive trajectory.
Looking ahead, Naked Wines forecasts an adjusted EBIT excluding the impacts of inventory liquidation to be within the range of £3 million to £8 million. Sales for the entire year are anticipated to fall between £240 million and £270 million, underscoring cautious optimism about future performance and strategic alignment.
Naked Wines continues to enhance its financial standing, even as it navigates challenges in sales and membership.
