Naked Wines has announced a significant reduction in its pre-tax losses for the first half of 2024, aligning with the retailer’s expectations of robust trading during the peak season period.
Naked Wines, a prominent player in the online wine retail market, has reported a narrowing of pre-tax losses to £5.6 million for the first half of 2024, compared to a substantial £9.7 million loss in the same period of 2023. Despite a 15% decline in total sales, amounting to £112.3 million, the company maintains that its financial and strategic position is solid as it approaches the peak trading season.
The company’s Adjusted EBIT, excluding inventory costs, was £600,000, reflecting a 77% drop year-on-year. However, the retailer emphasises the strong engagement of its core members, with customer NPS rising to 76 from 73 the previous year. Moreover, core customer retention has improved by two percentage points, reaching 79%.
Rodrigo Maza, the Chief Executive Officer of Naked Wines, expressed confidence in the company’s current standing, citing firm financial foundations and loyal customer engagement. “Naked Wines is in a better position, both financially and strategically,” Maza stated. “Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period.”
Looking toward the full-year forecast, Naked Wines anticipates sales to fall within the range of £240 million to £270 million, with an Adjusted EBIT, excluding inventory liquidation, projected between £3 million and £8 million. This expectation aligns with previous guidance predictions.
In a recent strategic move, Naked Wines appointed Dominic Neary, a former executive from Reckitt and Just Eat, as the company’s new Chief Financial Officer. Maza welcomed Neary’s expertise in digital and international business as a valuable addition to the leadership team, underscoring a focus on cash, profitability, and growth.
Naked Wines’ improved financial metrics and strategic appointments suggest a forward-thinking approach as it capitalises on customer loyalty and navigates market challenges.
