Naked Wines has reported a decrease in its losses for the first half of the year.
- Despite a reduction in sales, the company’s financial position has improved.
- Losses before tax were reduced from £9.7 million to £5.6 million.
- The company faced significant costs from inventory liquidation.
- Sales dropped due to a reduction in active members.
Naked Wines recently revealed a reduction in its financial losses for the first half of the year, demonstrating a notable improvement in its financial standing. Although sales figures have declined, the company managed to narrow its pre-tax losses to £5.6 million, down from the previous year’s £9.7 million. This improvement reflects the company’s ongoing efforts to implement a turnaround plan.
The company experienced a drop in adjusted EBIT, which fell by £5.3 million to a loss of £3.1 million. This decrease was primarily due to a £3.7 million impact from inventory liquidation and related costs. Specifically, these costs included a £2.5 million increase in the US stock provision and £1.2 million in losses from the disposal and other liquidation efforts of wine stock.
Sales figures for the half-year period saw a reduction of 15%, amounting to £112.3 million. This decline was attributed to a 12% decrease in active members, impacting overall revenue. However, the company remains optimistic about its financial trajectory, particularly as it heads into the peak trading season.
Looking ahead, Naked Wines has reported solid early trading in the peak season and expects to achieve an adjusted EBIT, excluding inventory liquidation, ranging between £3 million and £8 million. Full-year sales are forecasted to be in the range of £240 million to £270 million.
Rodrigo Maza, the Chief Executive, expressed confidence in the company’s position, highlighting that “Naked Wines is in a better position…both financially and strategically.” He emphasised the strong financial foundation and ongoing customer loyalty and engagement.
Naked Wines continues to focus on its strategic initiatives for customer acquisition and retention, indicating solid progress despite challenges.
