Naked Wines lifts FY profit outlook again

In an update for the year to 3 April, the company said adjusted earnings before interest and tax were expected to be between £15m and £18m. In a trading update in January, Naked Wines had upped its FY EBIT outlook to between £13m and £17m from £9m to £13m previously.

Meanwhile, reported pre-tax profit is set to be £2m to £5m, in line with current consensus forecasts.

The group said total revenue was in line with guidance at around £350m, flat on a reported basis and down 6% to 8% on a comparable basis.

Chief executive Nick Devlin said: "FY23 has been a challenging year but we have made significant strategic progress with a foundation for sustainable profitable growth. Our pivot to profit is on track, delivering profitability at the top end of our guidance. Our cost control actions have resulted in SG&A at the low end of our expectation, while destocking continues as planned."

He said Naked Wines enters FY24 as a "significantly larger and substantially more profitable" business than it was before the pandemic.

"As stated in January, we expect a modest revenue decline near-term, but the demand outlook is stabilising, and we have identified opportunities for material cost savings in our fulfilment operations in the medium-term. We continue to expect to generate cash in the second half of FY24 as stock levels reduce."