Naked Wines PLC (AIM:WINE, OTCQX:NWINF)’s first half revenue fell 20% year-on-year to £132m, with adjusted profits totaling £2.2m and pre-tax losses totaling £9.7m. I did. .
In an effort to stabilize its finances, Naked Wines significantly reduced general and administrative expenses by 27% in line with declining sales performance.
This strategic cost reduction is part of the company’s broader focus on achieving sustainable cash generation and profitability in the coming period.
Naked Wines continued its proactive approach to inventory management by significantly reducing future inventory intake.
To strengthen the company’s financial position in the long term, the acquisition price is expected to end financial year 2025 at between £60m and £70m below estimated cost of sales.
Repeat customers remain strong for Naked Wine, with revenue per customer increasing in all markets.
Additionally, the company achieved lower cancellation rates and more stabilization of its UK customer base.
After the period, net cash increased by £7.1m at the end of November, taking total available liquidity to £53m.
Rowan Gormley, executive chairman, said: “We are moving towards a period of sustained cash generation. We have reduced costs by £3m and have a further £10m planned and next time “We expect to generate between £40m and £50m of cash from the stock.” 18 months.
“Additionally, we are well underway testing an enhanced customer proposition to get our company back on track for growth. We would like to thank our employees, winemakers and customers for their support and will ensure they are rewarded.” We would like to reiterate our determination to do so.”
Despite the challenging trade environment, Mr Gormley remains optimistic.
He said: “Since October last year, Naked has been testing a number of improvements to our new customer proposition to improve returns and help us reach a wider audience.
“Right now, at least one idea looks like a winner, and we’re doing extensive testing in all three markets during peak season. We plan to provide more details about this.”