The online wine retailer reported revenue of £250.2 million, a 14% year-on-year decline
LONDON: Naked Wines plc, the direct-to-consumer wine company, announced Thursday its full-year results for the 52 weeks ended March 31, 2025, revealing a performance in line with its guidance and a focus on profitability and cash generation. The company also announced it will begin distributing cash to shareholders.
Naked Wines reported revenue of £250.2 million, a 14% year-on-year decline, but within management’s expectations. The company significantly improved its statutory loss before tax, which fell to £4.9 million from £16.3 million the previous year, primarily due to a reduction in impairment costs.
A key highlight was the company’s progress in reducing excess inventory, which decreased by £37 million to £108 million. This effort, supported by £6.5 million in liquidation costs, drove a positive free cash flow of £18.5 million, a significant increase from £6.7 million in the prior year. The company’s net cash position also improved to £30.1 million.
“Over the course of FY25, we have taken big steps to stabilize the business, to rebuild the team, and ground our strategy in real data and insights,” said CEO Rodrigo Maza. “We are already executing with more focus, more discipline, and more conviction than ever.”
Maza added that the company’s new strategic plan, announced in March, aims to generate significant cash and sustainable profitable growth.
As part of this new plan, Naked Wines will begin shareholder distributions, targeting ongoing payouts of up to 40% of its 12-month cash creation or adjusted EBITDA. A proposed share buyback of approximately £2 million is expected to commence shortly.
Looking ahead, the company provided guidance for the 2026 fiscal year, projecting revenue between £200 million and £216 million and adjusted EBITDA (excluding liquidation costs) of £5.5 million to £7.5 million. The company’s new non-executive chair, Jack Pailing, was appointed on July 22.