REG - Naked Wines PLC - Peak Season Trading Update

Naked WinesAnnouncement

29/01/2025 07:00

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RNS Number : 0287V  Naked Wines PLC  29 January 2025

Naked Wines plc

('Naked Wines' or 'Group')

 

Peak Season Trading Update

 

Solid peak trading performance and in line with full year expectations

 

Naked Wines is pleased to provide a peak season trading update in respect of
the 13 weeks ended 30 December 2024 (prior year period the 13 weeks to 1
January 2024).

 

Peak Season and Current Trading

 

Peak season trading was solid and in line with expectations, with improvement
in key KPI trends, including the early impact of testing initiatives:

 

●    Revenue down -8.9% at constant currency vs prior year was an
improvement on -14.3% at HY25 (at reported currency, revenue was down -10.2%
vs -15.1% at HY25)

●    Member trends continue to improve:

○    Active members -10% vs -12% for HY25

○    Core member* retention increased to 81% from 79% at HY25

●    Revenue per member up by 2% vs prior year, reflecting improvements
in order frequency and average order value

●    Net cash continues to improve in line with expectations, at £30m,
up £26m on prior year and up £7m on HY25

●    Ongoing rightsizing of inventory continues to be a key driver of
cash generation, and the closing position of £116m was a £47m reduction on
prior year period, and a £23m reduction on HY25. As previously communicated,
management continues to take actions to minimise inventory, some of which
could impact inventory liquidation costs and may lead to EBIT at the lower end
of guidance.

 

*Core members are members who are more than 24 months old

 

Performance continues to track in line with full year expectations, and the
Group is seeing further outputs and improvements from its comprehensive
Strategic Initiatives and Testing Plan which bolstered the peak season
performance.

 

Strategic Update and Presentation

 

In line with the previously outlined timeline, Naked Wines will provide a
comprehensive update on the progress of its Strategic Initiatives and outputs
from its wider performance review before the financial year end. This will
include a plan focused on shareholder value creation and further improved cash
generation.

 

To coincide with the publication of the above, the Group will hold an
in-person and virtual presentation for investors and analysts in late March
2025 (details to be provided nearer to the time).

 

Commenting on the peak season performance, Rodrigo Maza, CEO, said:

 

"We are pleased with our performance during the important peak season, which
was solid and featured improving trends and positive signals from KPIs
supported by our strategic initiatives and testing plan. We are tracking in
line with full year expectations, and look forward to providing a further
update in March, including a plan focused on shareholder value creation."

 

For further information, please contact:

 

 Naked Wines plc                      IR@nakedwines.com (mailto:IR@nakedwines.com)

 Rodrigo Maza, CEO

 Dominic Neary, CFO

 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

 Vigo Consulting (Financial PR)       Tel: 0207 390 0230

 Tim McCall

 

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