CEO Confident in Future Growth Despite Current Challenges

  • Naked Wines reports £15m loss in FY23 compared to a profit of £2.9m in the previous year
  • Total sales dropped to £354m, down 8% on a 52-week comparable basis
  • Sales to new customers declined to £26.9m from £34m in 2022
  • Adjusted EBITDA increased to £17.4m or £16.3m on a 52-week comparable basis
  • Gross profit rose 6% to £162m on a comparable 52-week basis
  • Full-year revenues expected to decline 8% to 12%, with new customer investment between £23m-£27m and repeat customer contribution between £72m-£80m in FY24
  • Nick Devlin, group CEO, remains optimistic about the company’s resilience and future growth potential

Naked Wines has reported a loss of £15 million for the fiscal year ending April 3, 2023, compared to a profit of £2.9 million in the previous year. The company attributes this loss to non-cash goodwill impairment and inventory provision charges. Total sales dropped by 8% on a 52-week comparable basis, reaching £354 million. Sales to new customers declined to £26.9 million from £34 million in the previous year. Despite these setbacks, Adjusted EBITDA increased to £17.4 million or £16.3 million on a 52-week comparable basis, driven by lower new customer investment. Gross profit also rose by 6% to £162 million on a comparable 52-week basis. Looking forward, the company expects full-year revenues to decline between 8% and 12%, with new customer investment ranging from £23 million to £27 million and repeat customer contribution between £72 million and £80 million in FY24. Nick Devlin, group CEO, remains optimistic about the company’s resilience and future growth potential despite challenging conditions.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the financial performance of Naked Wines, including losses, sales figures, and future expectations. It also includes quotes from the group chief executive and chairman, offering insight into their plans for improvement and a commitment to addressing shareholder concerns.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial performance of Naked Wines, including losses, sales, and future expectations. It also includes statements from executives addressing the situation and plans for improvement. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: Naked Wines’ stock price may be impacted by the financial results and future expectations
Financial Rating Justification: The article discusses Naked Wines’ financial performance, including losses, sales, and future revenue projections, which can affect the company’s stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

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