Naked Wines reports a significant reduction in pre-tax losses for the first half of 2024, showcasing resilience despite a sales dip.
- Pre-tax losses reduced to £5.6 million from £9.7 million in the previous year, amidst a 15% fall in total sales to £112.3 million.
- Customer engagement remains robust with an improved Net Promoter Score (NPS) of 76 and higher customer retention rates.
- Strategic efforts in customer acquisition and retention are yielding results even as adjusted EBIT excluding inventory costs drops by 77%.
- The appointment of Dominic Neary as CFO marks a strategic move to bolster financial and digital strategy at Naked Wines.
In the first half of 2024, Naked Wines demonstrated its ability to manage losses effectively, narrowing pre-tax losses to £5.6 million from £9.7 million the previous year. This improvement came despite a 15% decline in total sales, reducing them to £112.3 million. The company attributes this to its strong strategic positioning, allowing it to weather the drop during a challenging trading environment.
Customer loyalty remains a cornerstone of Naked Wines’ strategy. The company reported an increase in its Net Promoter Score (NPS) to 76, a rise from 73 in the previous year, illustrating a high level of customer satisfaction and engagement. Additionally, customer retention improved by two percentage points to 79%, indicating that the company’s efforts in customer relations are effective.
Despite a significant drop in adjusted EBIT, which fell by 77% when excluding inventory costs, the company continues to learn from its strategies focused on customer acquisition and retention. These strategic initiatives have been pivotal in maintaining engaged core members, enabling Naked Wines to navigate the peak trading season with confidence.
CEO Rodrigo Maza expressed optimism about the company’s position, noting that robust financial foundations have been laid and that the company’s strategic efforts are bearing fruit. The full-year projections remain optimistic, with expected sales between £240 million to £270 million and an adjusted EBIT excluding inventory liquidation of £3 million to £8 million.
With the recent appointment of Dominic Neary as Chief Financial Officer, Naked Wines aims to strengthen its financial and strategic capabilities. Neary’s background in digital and international business is viewed as an asset, as Naked Wines focuses on boosting cash flow, profitability, and growth.
Naked Wines is strategically positioned for stability and growth despite facing a reduction in sales.
