Naked Wines sales rocket to £350m as subscription service soars

Naked Wines has reported a strong growth in its full year results, attributing its success to repeat customers and a growing subscription service.

In the year ending 28 March, the wine retailer saw EBIT of £2 million, compared with a £1.5 million loss last year.

Sales increased by 5% year-on-year on a constant currency basis to £350.3 million, up 76% compared with pre-pandemic levels two years ago.

The online wine retailer also reported repeat customer sales at 80%, while its subscription service, Angels, grew by 9% to 946,000 customers.

According to its latest figures, the company also invested £41.3 million in new customer acquisition across the year as it seeks future growth opportunities.

The business is expected to break even this year.

READ MORE: Naked Wines reports £10m loss after heavy investment

“In the past year, we moderated investment responsibly as we navigated inflationary challenges,” said Naked Wines CEO Nick Devlin, adding that the business “will not pursue growth at any cost”.

“In that context, I’m pleased with the substantial growth in sales to repeat members supported by sales retention above our expectations for the year at 80% and our ability to deliver profitability.”

The news comes as Naked Wines also announced a number of board changes, including the appointment of Deirdre Runnette and Melanie Allen as non-executive directors.

Non-executive director Katrina Cliffe will be stepping down from the board on 31 July 2022.

Devlin added: “Looking ahead, Naked Wines is well-positioned to continue to grow amid a changing consumer environment. Our enhanced scale, attractive unit economics and healthy balance sheet allow us to continue to invest for growth.

“We believe this is the responsible balance to strike in FY23, mindful of the levels of macro-economic uncertainty, but also of the opportunities we see ahead and the potential for disruptive models like ours to gain traction in tough times as consumers reevaluate their purchasing choices.”

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