In the first half of 2024, Naked Wines has narrowed its pre-tax losses, marking a positive shift for the company amid declining sales.
For the 26 weeks concluding on 30 September, the company reported a pre-tax loss of £5.6 million, a significant improvement from the £9.7 million loss recorded in the same period the previous year. However, total sales saw a decline of 15%, amounting to £112.3 million.
Naked Wines’ adjusted earnings before interest and taxes (EBIT), excluding inventory costs, decreased by 77% year-on-year, standing at £600,000. Despite these challenges, the retailer’s core membership remains strong, with the customer Net Promoter Score (NPS) rising to 76 from 73, and customer retention climbing by two percentage points, reaching 79%.
Rodrigo Maza, the CEO, stated, ‘Naked Wines is in a better position, both financially and strategically. We now have robust financial foundations, and our members remain loyal and engaged.’ He further highlighted the ongoing strategic initiatives focused on customer acquisition and retention, which are beginning to yield results during the peak trading period.
Looking ahead, Naked Wines anticipates its full-year performance to align with previous forecasts, with sales projected between £240 million and £270 million, and adjusted EBIT, excluding inventory liquidation, between £3 million and £8 million.
The recent appointment of Dominic Neary, formerly of Reckitt and Just Eat, as Chief Financial Officer, brings added expertise to the digital and international business domains. Maza expressed optimism about Neary’s swift transition and his contributions towards enhancing the company’s focus on cash, profitability, and growth.
Naked Wines is strengthening its financial stance despite a drop in sales, buoyed by a loyal customer base and strategic leadership.
