Naked Wines ends year in line with expectations
By Josh White
Date: Tuesday 05 Aug 2025
(Sharecast News) - Naked Wines reported full-year results in line with guidance on Tuesday, and confirmed the start of shareholder distributions, including an initial £2m share buyback, following strong progress in reducing inventory and generating cash.
For the 52 weeks ended 31 March, group revenue fell 14% year-on-year to £250.2m, broadly in line with management expectations.
Gross profit margin was steady at 18.4%, with improved contribution from repeat customers offset by the impact of bulk sales and stock liquidation.
The AIM-traded company posted a statutory pre-tax loss of £4.9m, narrowing from a £16.3m loss in the prior year.
Adjusted EBITDA, excluding inventory liquidation and associated costs, came in at £6.7m, down from £8.7m in the 2024 financial year, but within guided range.
Inventory levels were significantly reduced during the year, falling by £37m to £108m.
The group incurred £6.5m in costs related to inventory liquidation, which helped drive a sharp improvement in free cash flow, which rose to £18.5m from £6.7m.
Net cash, excluding lease liabilities, increased by £10.5m to £30.1m.
"Over the course of the 2025 financial year, we have taken big steps to stabilise the business, to rebuild the team, and ground our strategy in real data and insights," said chief executive Rodrigo Maza.
"We've announced a clear disciplined plan to reach in excess of £70m cash."
Maza said the company was already executing with "more focus, more discipline, and more conviction than ever".
"While there's still work to do, I genuinely believe we have built the platform to take Naked to the next stage of growth; 2026 will be an exciting year."
The group confirmed that trading in the current financial year was in line with expectations.
It said it had already actioned £15m in cost savings for 2026, towards a medium-term target of £23m annually.
Inventory liquidation continued, with a medium-term goal of generating £40m in cash.
As part of its new capital allocation policy, Naked Wines said it planned to return up to the lesser of 40% of 12-month cash creation or 12-month adjusted EBITDA through shareholder distributions.
That would begin with a £2m share buyback in the coming weeks.
Naked also reaffirmed 2026 guidance, forecasting revenue between £200m and £216m, and adjusted EBITDA of £5.5m to £7.5m, excluding inventory-related costs.
Net cash was expected to rise to between £35m and £39m.
The company acknowledged an adverse impact from currency movements, with a stronger dollar expected to reduce revenue by £7m and EBITDA by £1.2m.
On the governance front, Naked Wines appointed Jack Pailing as non-executive chair in July, reinforcing its newly-rebuilt leadership team led by Maza and chief financial officer Dominic Neary.
At 1015 BST, shares in Naked Wines were up 1.54% at 79.2p.
Reporting by Josh White for Sharecast.com.
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