Online Wine Sales Soar as Naked Wines Reports 80% Increase in H1 Revenue
- Naked Wines’ revenue increased by 80% to £157.1m in H1
- Repeat customer contribution rose by 89%
- US online sales grew from 5% to 20% of off-premise value
- Naked Wines’ US arm now represents 49% of group sales
- Expected sales growth raised to between 55% and 65% for the current year
Naked Wines has reported a significant increase in revenue, with a 80% rise to £157.1m for the half-year ended 28 September 2020. The company also noted a narrower adjusted pre-tax loss of £3.2m compared to the previous year’s £4.5m. This growth was achieved despite increased investment in new customers and higher fixed costs. Repeat customer contribution rose by 89%, mirroring the total growth rate between FY14 and FY20. The pandemic has accelerated online demand for wine, particularly in the US market where online sales grew from 5% of off-premise value pre-Covid-19 to 20% in April this year. Naked Wines’ US business delivered the strongest revenue growth at 95%. The company now sees 49% of its sales coming from the US. Despite economic uncertainty, it expects sales growth between 55% and 65% for the current year.
Factuality Level: 9
Factuality Justification: The article provides accurate information about Naked Wines’ financial performance and its growth during the pandemic, citing specific numbers and percentages. It also includes relevant quotes from the CEO that add context to the situation. The article is focused on the main topic without any digressions or unnecessary details.
Noise Level: 3
Noise Justification: The article provides relevant information about Naked Wines’ financial performance and the impact of COVID-19 on their business, particularly in the online wine category. It includes specific numbers and quotes from the CEO, but it could benefit from more analysis or context on the broader industry trends and potential risks beyond the company’s performance.
Financial Relevance: Yes
Financial Markets Impacted: Naked Wines
Financial Rating Justification: The article discusses Naked Wines’ financial performance, including revenue growth and adjusted pre-tax loss, as well as the impact of COVID-19 on its online wine sales. This information is relevant to investors and stakeholders in the company and can potentially affect the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the impact of COVID-19 on the company’s growth and online wine sales.
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