Naked Wines PLC
LSE:WINE
Naked Wines PLC
Naked Wines Plc is a holding company, which engages in the retail of wines, beers, and spirits. The company is headquartered in Norwich, Norfolk. The firm is engaged in the retailing of wines, beers, and spirits in the United Kingdom, the United States and Australia. The firm offers its products online. The firm operates through three geographical segments: US, UK and Australia. The Company’s subsidiaries include Naked Wines Employee Share Ownership Trust Limited and Naked Wines International.
Naked Wines Plc is a holding company, which engages in the retail of wines, beers, and spirits. The company is headquartered in Norwich, Norfolk. The firm is engaged in the retailing of wines, beers, and spirits in the United Kingdom, the United States and Australia. The firm offers its products online. The firm operates through three geographical segments: US, UK and Australia. The Company’s subsidiaries include Naked Wines Employee Share Ownership Trust Limited and Naked Wines International.
Results In Line: Naked Wines reported half-year results that are in line with previously issued guidance, with progress on key strategic and financial goals.
Profitability Up: Adjusted EBITDA more than doubled year-on-year, reaching GBP 3.6 million, reflecting a focus on profitable core customers and lower acquisition spend.
Cash Generation: The company generated GBP 10 million in cash, funding a GBP 2 million share buyback, resulting in a net GBP 8 million cash increase compared to a year ago.
Margins Improve: Gross profit margin was up materially, driven by inventory liquidation and genuine efficiency gains, despite regulatory cost pressures.
Retention & Acquisition: Member retention rates improved, while customer acquisition costs decreased and acquisition efficiency moved in the right direction.
Distribution Policy: Naked Wines began returning cash to shareholders and confirmed an ongoing policy to distribute up to 50% of cash generation or adjusted EBITDA, whichever is lower.
Guidance Reiterated: Management reiterated its full-year and medium-term guidance, maintaining targets for profitability, cash generation, and inventory reduction.
