REG - Naked Wines PLC - Pre-Close Trading Update

Naked WinesAnnouncement

21/05/2024 07:00

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RNS Number : 1574P  Naked Wines PLC  21 May 2024

21 May 2024

 

Naked Wines plc

("Naked Wines" or "Group")

 

Pre-Close Trading Update for year ended 1 April 2024

 

Results in line with guidance, cash position strengthened

 

Naked Wines is pleased to provide a pre-close trading update in respect of
FY24 for the 52 weeks period ended 1 April 2024. Naked Wines expects to
release audited FY24 results in July 2024, as such this update contains
unaudited financial information subject to final audit review.

 

Highlights:

 

●     Total revenue in line with guidance at c.£290m (FY23: £333m),
reflecting -13% year-on-year change on a 52-week comparable basis, an improved
trend vs the -18% performance reported at HY24

●     Adjusted EBIT of c.£5m, at the upper end of previously announced
expectations of £2-6m (FY23: £15m on a 52-week comparable basis)

●     Statutory operating loss anticipated to be in the range of £13m
to £18m, with main adjusting items being:

o  Goodwill and asset impairments
       (£9-11m)

o  US inventory
provisioning
(£6-8m)

o  Loss on early redemption of Majestic loan note             (£2.6m)

o  Restructuring
charges
(£1.4m)

o  Profit on sales of previously provisioned inventory         £1.5m

 

●     Net cash of £20m (FY23: £10m), materially above the guidance
range of £5-15m, supported by the previously announced early redemption of
the Majestic Vendor Loan Note

●     Good progress on delivering key initiatives:

o  Operating G&A costs 11% lower than FY23 on a 52-week comparable basis,
with full year impact of actions taken during FY24 to be seen in FY25

o  Inventory (excluding impact of provisioning) successfully reduced by 11%
compared to FY23

 

●     Replacement credit facility process is commencing documentation,
with successful completion expected to provide the group with additional
liquidity

 

Rodrigo Maza, CEO, commented:

 

"These results demonstrate the continued progress that is being made to make
the business leaner and stronger. With higher levels of cash, a moderating
decline in sales and demonstrable underlying profitability we have a
strengthening platform from which to build as we continue to drive towards
profitable growth. FY24 was a challenging year for our winemakers, our staff,
our customers and our shareholders and I'd like to thank all of them for their
continued support and loyalty. We hope to continue demonstrating tangible
progress in FY25."

 

 

For further information, please contact:

 

 Naked Wines plc                           IR@nakedwines.com

 Rodrigo Maza, Chief Executive Officer

 James Crawford, Chief Financial Officer

 Catherine Miles / Libby Bundock

 Investec (NOMAD & Joint Broker)           Tel: 0207 597 5970

 David Flin / Ben Farrow

 Jefferies (Joint Broker)                  Tel: 0207 029 8000

 Ed Matthews / Harry le May

 Instinctif (Financial PR)                 Tel: 07917 178 920 / 07931 598 593

 Guy Scarborough / Damian Reece

 

 

About Naked Wines plc

 

Naked Wines connects everyday wine drinkers with the world's best independent
winemakers.

 

Why? Because we think it's a better deal for everyone. Talented winemakers get
the support, funding and freedom they need to make the best wine they've ever
made. The wine drinkers who support them get much better wine at much better
prices than traditional retail.

 

It's a unique business model. Naked Wines customers (who we call Angels)
commit to a fixed prepayment each month which goes towards their next
purchase. In turn. Naked funds the production costs for winemakers, generating
savings that are passed back to its customers. It creates a virtuous circle
that benefits both wine drinker and winemaker.

 

Our mission is to change the way the whole wine industry works for the better.
In the last reported 12 months we served more than 792,000 Angels in the US,
UK and Australia, making us a leading player in the fast-growing
direct-to-consumer wine market.

 

Our customers have direct access to 293 of the world's best independent
winemakers making over 2,000 quality wines in 22 different countries. We
collaborate with some of the world's best independent winemakers like Matt
Parish (Beringer, Stags' Leap) and eight-time Winemaker of the Year Daryl
Groom (Penfolds Grange).

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