Naked Wines (WINE) H1 2025 earnings summary

Executive summary

• Leadership transition with new CEO Rodrigo Maza and CFO Dominic Neary, emphasizing a strengthened management team and robust financial foundations.

• Financial performance for HY25 aligned with guidance, with revenue declining 14–15% year-over-year to £112.3m and improved liquidity and cash position.

• Strategic initiatives and testing programs are progressing, focusing on customer engagement, retention, personalisation, and acquisition efficiency.

• Performance review underway to maximise shareholder value, with updates and potential share buybacks expected by year-end.

• Customer engagement remains strong, with NPS rising to 76 and core member retention improving to 79%.

Financial highlights

• Revenue for HY25 was £112.3m, down 14–15% year-over-year, mainly due to lower active members.

• Adjusted EBIT before inventory liquidation was £0.6m; including liquidation, adjusted EBIT was a loss of £3.1m.

• Statutory loss before tax improved to £5.6m from £9.7m year-over-year.

• Net cash increased by £20.1m to £22.9m (HY24: £2.8m), driven by inventory reduction and a £9.1m vendor loan note.

• G&A expenses reduced by nearly £3m year-over-year due to savings initiatives.

Outlook and guidance

• FY25 performance expected to be in line with guidance: revenue £240–£270m, adjusted EBIT (excl. inventory liquidation) £3–£8m, closing net cash £25–£35m.

• Options under review to accelerate inventory reduction and drive efficiencies, with further opportunities identified for FY26.

• Ongoing review of US inventory may lead to further liquidation costs, potentially resulting in EBIT at the lower end of guidance.

• Performance review underway, with updates on value creation and potential share buybacks to be shared before year-end.