By Christian Moess Laursen
London-listed online wine retailer, Naked Wines, announced a pretax loss in its fiscal year ended April 3. The company experienced a significant swing from a pretax profit of GBP2.9 million in fiscal 2022 to a pretax loss of GBP15.0 million in fiscal 2023. The loss can be attributed to a non-cash goodwill impairment of GBP18.2 million and inventory provision charges of GBP10.25 million.
Despite the overall loss, Naked Wines reported adjusted earnings before interest and taxes of GBP17.4 million, surpassing the guided range of GBP13 million-GBP17 million. This is a substantial increase from the previous year’s earning of GBP2.0 million.
While revenue rose slightly by 1% to GBP354.05 million, Naked Wines anticipates a decline of 8%-12% in revenue for fiscal 2024. Despite the challenging market conditions, the company aims for a manageable adjusted EBIT range of GBP8 million to GBP12 million.
CEO Nick Devlin acknowledged the tough environment and emphasized the importance of configuring the business for profitability and cash generation. He stated, “A leaner and more focused Naked will be best placed to deliver for our customers and winemakers.”
