Naked Wines (WINE) Investor Update summary

Strategic business model and market positioning

• Direct-to-consumer model connects nearly 600,000 members with 300+ independent winemakers, offering value, convenience, and selection across the UK, US, and Australia.

• Diversified operations across three countries provide resilience against market or regulatory shifts.

• Focus on customer loyalty, community, and rebuilding brand strength as key differentiators, with renewed emphasis on communicating value proposition.

• Wine market is fragmented and growing, with a 4% forecast CAGR and a 27m premium wine drinker TAM across the UK, US, and Australia.

• Leadership team with deep experience in sales, marketing, digital, and finance joined since 2024.

Financial health and liquidity

• Over £75m cash to be delivered from the FY25 balance sheet, with up to £30m from medium-term trading.

• Net cash position of £33m at March 2025, up from £10m at the start of FY24.

• £40m net cash to be released from excess inventory, delivered 12-18 months ahead of prior expectations.

• Angel funds are secure and stable, with liquidity exceeding total Angel balances.

• Inventory reduction strategies identified an extra $5 million in cash generation, with $12 million in liquidation costs included in the net cash figure.

Profitability and cost management

• Underlying business is free cash flow positive and profitable, with EBITDA targeted at £10–15m.

• £23m in annualized cost savings identified, including £7m from marketing and £16m from logistics, G&A, and COGS.

• Marketing spend reduced by 30%, with only a 10% drop in new customer acquisition expected.

• Holdout testing and econometric modeling used to identify and cut ineffective marketing spend.

• Inventory has fallen by £28m in FY25, exceeding reduction targets.