Naked Wines suffered a blockage hangover as it fell to a loss of £ 10.7m annually, despite a 68% increase in sales due to a boom in online demand for liquor.
The group went into the red as spending on new customers surged, with advertising budgets doubling to £ 42.3m.
The loss for the year to March 29 was double that of the previous year.
That was despite Naked’s sales growth to £ 340.2 million “due to the accelerated channel shift to online wine purchases by COVID-19”.
This now accounts for almost half of revenue and is supported by significant expansion in the company’s largest market, the United States.
According to Naked, sales in April and May this year were 8% above the same period and 2020, and 96% above pre-pandemic levels in 2019.
While generating up to £ 375m in revenue for the current fiscal year, it also plans to invest an additional £ 50m in acquiring new customers.
The group, which connects subscribers and independent winemakers’ products, says it has made “significant progress” over the past year as it has increased its active customers by 53% to 886,000.
Naked’s business model is usually to lose money in the case of the first wine to sell to each customer at a discounted price, and despite being in the red this year, it is bullish on the outlook and is moving forward. With that extension that said there was enough cash.
CEO Nick Devlin said he saw “a remarkable growth potential in the future.”
Chairman Ian Hardink said it was an “unprecedented” time.
“We have successfully coped with the surge in demand from COVID-19 in the first quarter and have gained this momentum for the rest of the year,” said Harding.
“As a result, the business has dramatically exceeded our expectations.”
Stocks fell nearly 3%.
Independent retail analyst Nick Bab said, “Given the cost of acquiring new customers, it’s surprising that losses actually increased slightly, but investors are relieved to hear that sales are still increasing. Would be. “
COVID-19: Naked Wine Sinks Annual Loss Despite Soaring Blocked Sales | Business News
Source link COVID-19: Naked Wine Sinks Annual Loss Despite Soaring Blocked Sales | Business News