REG - Naked Wines PLC - Pre-Close Trading Update

Naked WinesAnnouncement

27/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230427:nRSa6166Xa&default-theme=true

RNS Number : 6166X  Naked Wines PLC  27 April 2023

27 April 2023

 

Naked Wines plc

 

("Naked Wines" or "Group")

 

Pre-Close Trading Update, based on unaudited financials, for the year ended
3rd April 2023

 

Delivering our Pivot to profit

 

Highlights:

 

●      Total revenue in line with guidance at c.£350m (flat on a
reported basis, -6% to -8% on a comparable basis(1))

●      FY23 adjusted EBIT expected to be £15-18m, at the top end or
slightly above the guided range

●      Reported Profit before tax expected to be £2-5m, consistent
with current consensus

●      Adjusted items of £14m, restructuring cash costs lower and
non-cash stock costs higher than prior guidance(2)

●      New customer investment expected at approximately £21m with
5-year payback expected to be 1.6-1.8x, balancing returns with cash generation
and scale considerations

●      Net cash balance of £10 million supported by inventory
reduction on track to guidance

●      $60m group credit facility fully operational having
transitioned from Silicon Valley Bank to First Citizen Bank

 

Nick Devlin, Group Chief Executive, commented:

 

"FY23 has been a challenging year but we have made significant strategic
progress with a foundation for sustainable profitable growth. Our pivot to
profit is on track, delivering profitability at the top end of our guidance.
Our cost control actions have resulted in SG&A at the low end of our
expectation, while destocking continues as planned. I'd like to thank the
Naked team and our community of winemakers for their continued support.

 

We enter FY24 as a significantly larger and substantially more profitable
business than we were pre-pandemic. As stated in January, we expect a modest
revenue decline near-term, but the demand outlook is stabilising, and we have
identified opportunities for material cost savings in our fulfilment
operations in the medium-term. We continue to expect to generate cash in the
second half of FY24 as stock levels reduce. Planned developments in our
customer proposition will increase the rate of new customer recruitment and I
look forward to sharing more detail on this, as well as detailed guidance for
the year ahead, with our full year results presentation."

 

Note

 

1) FY23 was a 53 week year. Numbers are as reported for 53 weeks except where
stated as a comparable basis. For the comparable basis, figures refer to
constant currency, 52-week versus 52-week comparisons excluding the additional
53(rd) week, and excluding inventory disposals utilising the inventory
restructuring charge.

2) Prior guidance was for cash restructuring costs up to £4m and non-cash
inventory-related charges up to £8m. Restructuring costs are expected to be
less than £2m, non-cash inventory related charges are approximately £14m.
Full detail of other adjusting items will be provided with the full year
results, and this statement contains estimates until the conclusion of the
annual audit process

 

 

For further information, please contact:

 

 Naked Wines plc                               IR@nakedwines.com

 Nick Devlin, Chief Executive Officer

 James Crawford, Chief Financial Officer

 Clara Melia / Chris MacDonald

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

 David Flin / Carlton Nelson / Ben Farrow

 Jefferies (Joint Broker)                      Tel: 0207 029 8000

 Ed Matthews / David Genis / Gill O'Driscoll

 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 commit to a fixed
prepayment each month which goes towards their next purchase. Naked in turn
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 financial year, we served more than 934,000 Angel members in the
US, UK and Australia, making us a leading player in the fast-growing
direct-to-consumer wine market.

 

Our customers (who we call Angel members) have direct access to 268 of the
world's best independent winemakers making over 2,200 quality wines
in 22 different countries. We collaborate with some of the world's best
independent winemakers like Matt Parish (Beringer, Stags' Leap) and 8-time
Winemaker of the Year Daryl Groom (Penfolds Grange).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAFLKAFEDEAA