Naked Wines Plc has reported a 1% year-on-year growth in sales on a reported basis, to £159.3 million (€189.4 million), in the first half of its financial year ended 27 September 2021.
The company attributed this growth to its disruptive business model and strong customer retention.
However, Naked Wines highlighted that its growth was partially offset by a decline in new customer sales, with a tough comparison to the first half of 2021, which benefited from COVID-19 lockdowns.
'Disruptive Business Model'
Commenting on the company’s performance, Nick Devlin, group chief executive, said, "We have a large long-term value creation opportunity driven by a disruptive business model, an under penetrated $25 billion total addressable market (TAM), exceptional winemakers and wine, and a loyal customer base with attractive unit economics and recurring revenues.
"Our disruptive business model connects consumers directly with winemakers, stripping out the cost of traditional sales and distribution and delivering consumers exclusive world-class wines at fair prices and with a genuine connection to their maker."
The number of subscription customers, or the so-called ‘Active Angel’ base, reached 947,000, up 25% compared with the same period last year.
Profit before tax amounted to £1.3 million (€1.6 million), compared with a loss of £8.9 million in the first half of 2021, while adjusted EBIT stood at £1.2 million (€1.4 million), up from a loss of £3.2 million last year.
Naked Wines lowered its full-year sales outlook to a range of £340 million to £355 million, from its previous forecast between £355 million to £375 million.
With an inventory balance of £127 million as of 27 September 2021, the company believes it is well-positioned for what it anticipates as its largest holiday season.
However, it is mindful of the challenges in restoring availability over the last 12 months and continued supply chain disruption.
Devlin added, "We are focused on delivering an incredible experience for our members and on continuing to invest in growing Naked Wines and connecting more wine drinkers to the world’s best independent winemakers."