Naked Wines posts earnings slightly ahead of guidance

(Sharecast News) - Naked Wines reported adjusted EBITDA excluding inventory liquidation costs of £7.6m for the year ended 30 March on Thursday, up 13% and slightly ahead of guidance, despite revenue falling 20% to £199.1m as the group deliberately reduced customer acquisition spending. Its gross margin improved to 19.9% from 18.4%, while net cash increased to £33.4m from £30.1m after £6m of share buybacks.

The AIM-traded wine retailer forecast adjusted EBITDA of £7.6m to £9.0m for the current year on revenue of £158m to £175m, with net cash expected between £34m and £42m.

It said £25m of annualised savings had now been actioned or identified, exceeding its medium-term target, and reiterated plans for further shareholder distributions as profitability and cash generation improve.

At 0925 BST, shares in Naked Wines were up 3.53% at 74.54p.

Reporting by Josh White for Sharecast.com.

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