Consolidated the Step Change Achieved in FY21

Naked Wines navigated a dynamic consumer environment and inflationary pressures well in FY22 and consolidated the step change achieved in FY21. We end the year a larger, stronger business, as we: 

  • Continued to see a channel shift to online, transforming the online wine market
  • Made significant progress against key areas of strategy to enhance our customer proposition and strengthen our points of differentiation
  • Continued to enhance our appeal to winemakers and attract outstanding new winemakers to the platform, increasing the range of wines overall and luxury wine sales in the US
  • Gained critical recognition, which is enhancing quality perception
  • Invested in reinforcing the technology infrastructure of the business to support growth and establish the platform for years to come

Overview

In FY 2022, we delivered responsible growth driven by sustained repeat customer demand. All main geographies again delivered sales increases on a constant currency basis, including the US which is our largest market opportunity and where our offering is most differentiated. Highlights from the year include:

  • Total sales growth of 5% year-over-year constant currency
  • On a two-year basis vs. FY20, group sales increased 78% constant currency vs. continuing operations
  • Achieved Repeat Customer sales retention of 80%, ahead of expectations and reflecting the continued resonance of our proposition
  • Grew our base of active Angels by 9% from FY 2021 to a total of 964,000, well above expectations
  • Grew Repeat Customer Contribution profit growth by £1.3 million over FY21, driven by a 13% increase in Repeat Customer sales on a constant currency basis
  • Delivered Adjusted EBIT of £2.0 million versus a loss of £(1.5) million in FY21
  • Ended FY22 with a closing cash balance of £40 million (FY21: £85 million)

Looking Ahead

Naked Wines is well positioned to continue to grow amidst a changing consumer environment. Our enhanced scale, attractive unit economics and healthy balance sheet allow us to continue to invest for growth. Additionally, we will focus on steps to ensure our contribution economics support sustainable growth and on striking an effective balance of quality and volume.

  • Focused on improving our economics to drive sustainable growth
  • Translating traffic to LTV
  • Strengthening repeat economics
  • Reinforce key differentiators
  • Unlocking opportunities to benefit from changes in consumer behaviour

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