Naked Wines reports ‘foundations laid to focus on profitable growth’

Naked Wines posted a full-year loss before tax of £15m compared with profits of £2.9m last year and said the result was “driven by non-cash goodwill impairment and inventory provision charges”.

The retailer reported total sales of £354m, up 1% year on year or down 8% on a 52-week comparable basis, while adjusted EBIT of £17.4m, or £16.3m on a 52-week comparable basis, was “ahead of guidance due to lower new customer investment”.

Over the year Naked Wines said it had revised credit facility covenants “to accommodate the destocking process”, identifying a further £10m per annum of cost savings, “enhancing customers’ lifetime value and profitability” and now has “foundations laid to make profitability sustainable”. 

Chief executive Nick Devlin said: “The trading environment is tough, but Naked remains highly resilient. We have taken decisive action and have met the key goals in our ‘pivot to profit’ strategy. Our focus now is on delivering profitable growth.

“We recognise that the environment is likely to remain tough and are configuring the business to be profitable and cash-generative despite challenging conditions. A leaner and more focused Naked will be best placed to deliver for our customers and winemakers. I believe we can emerge from these challenges a stronger business.”