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Naked Wines revenue jumps 68% amid surge in U.S. business

Published 15/04/2021, 09:04
Updated 15/04/2021, 09:06
© Reuters

By Samuel Indyk

Investing.com – AIM-listed wine seller Naked Wines (LON:WINEW) announced a 68% surge in group sales in the previous year, exceeding the upper-end of the company’s guidance.

The strong revenue figures came amid a boom in US sales, which grew 75%, and now account for approximately 45% of total group sales.

New customers

There was an increased level of investment in new customers, which was around 10% higher than the upper-end of the company’s guidance, at a sustained higher payback than target. As lockdowns continued across the globe due to the pandemic, the company said that repeat customer contribution was circa 5% above the high-end of guidance.

Fixed costs were in line with expectations and the company said its balance sheet is healthy with enough cash to fund growth in 2022 fiscal year.

“Our significant growth is a testament to the customer demand for a disruptive online wine model that offers direct connection to the world's top winemakers,” said group CEO Nick Devlin.

“Whilst in some ways 2021 is as difficult to predict as 2020, I believe we have seen an enduring shift of demand online across multiple categories.

“Ultimately whilst COVID has driven the trial of many online models, the long-term winners will be the businesses that offer customers a genuinely differentiated offer: I firmly believe Naked will be one of those long-term winners.”

The company is scheduled to confirm full year results for the year-ending 29th March on 11th June.

At 09:05BST, Naked Wines shares were trading lower by 1.1% at 796.40p.

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