Naked Wines has revealed that its full-year annual profit will be at the top end or “slightly above” its previous guidance range.
In a recent financial update from the online wine retailer, the company said that its adjusted earnings before tax are expected to be £15-18m for the year.
Meanwhile, total revenue were in line with guidance, at about £350 million but flat on a reported basis, down 6% to 8% on a comparable basis.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
However, reported profit before tax is expected to be £2-5 million consistent with current consensus.
New customer investment for this year is expected to sit at approximately £21 million, which is in the same range as predictions in January of £20 million to £24 million, around 40% below 2022 levels.
“FY23 has been a challenging year but we have made significant strategic progress with a foundation for sustainable profitable growth,” group chief executive, Nick Devlin commented.
“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.
Devlin added: “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.”
