Naked Wines slashes losses to £5.6m after 'solid' trading during peak period

The CEO of Naked Wines has stated that the company is "in a better position, both financially and strategically" after significantly reducing its losses in the first half of its financial year.

The Norwich-based firm reported a pre-tax loss of £5.6m for the six months to 30 September, 2024, a decrease from the £9.7m loss it recorded for the same period in 2023, as reported by City AM.

However, Naked Wines also saw its revenue drop from £132.3m to £112.3m. These half-year results follow the appointments of Rodrigo Maza as CEO in April and Dominic Neary as CFO in November.

Maza commented: "Naked Wines is in a better position, both financially and strategically."

"We now have robust financial foundations, and our members remain loyal and engaged."

"Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period."

"I am pleased to welcome Dominic as our new CFO. His experience in digital and international businesses have helped him quickly transition, and I look forward to working with him as we focus the business on cash, profitability and growth."

Regarding its future prospects, Naked Wines noted that its early peak season trading has been "solid" and its liquidity and cash situation is "continuing to improve".

It anticipates that its full-year performance will align with previous guidance.

However, the company acknowledged that its US inventory, "whilst in line with previously communicated plans, remains overstocked".

Naked Wines has stated it is "reviewing options" to free up capital from its inventory, a strategy aimed at enhancing cash flow over the next two years. However, this could lead to higher liquidation costs and potentially result in EBIT at the lower end of guidance.