Naked Wines makes progress in returning to profitable growth despite deeper losses
Naked Wines has said its company is in “much better shape” than a year ago despite reporting a fall in annual sales and deeper losses.
In the 52 weeks to 1 April, its total sales dropped by 18% to £290 million while its statutory pre-tax loss widened to £16.3 million from £15 million in the prior year.
Naked Wines said the loss was driven by a reduction in repeat customer sales and more investment in customer acquisition activities.
Meanwhile, adjusted EBIT fell by 71% to £5 million in the period.
The company said it had made substantial progress in returning to profitable growth in the year, but admitted this was not immediately apparent from the trading results which were in line with expectations.
Over the past few months, the company has focused on “laying a solid foundation for the future” which has included the appointment of Rodrigo Maza as chief executive and Paul Calandrella to lead its US business. It has also been working to reduce its cost base and right-size inventory.
Rowan Gormley, Naked Wines non-executive chairman, said: “We’re making real progress turning things round. Now that the team has addressed the cost base and liquidity issues, we can focus our attention on the big prize…restoring Naked Wines to profitable growth.
“With a new invigorated team looking at the challenge with a fresh perspective, I feel confident that we will see Naked fulfil its potential to revolutionise the DtC wine market”
Naked Wines has also announced that it has appointed Dominic Neary as chief financial officer.
He will join the company in November from his position as chief financial officer at Mind Gym where he has helped return the business to profitability.
Prior to Mind Gym, he spent 10 years in various financial positions at Reckitt Benckiser where his most recent role was regional finance director of its North American pharmaceuticals business. He has also previously worked as commercial finance director at Moneysupermarket.com.
At Naked Wines, he will succeed James Crawford who is stepping down this autumn as previously announced.
Maza said: “I’m delighted to announce Dominic’s appointment as our new CFO. His experience in consumer and digital businesses, coupled with his international and US experience, make him a valuable partner as we focus on returning Naked Wines to sustainable profitable growth.”
