Naked Wines 'in better position' despite revenue slide

(Sharecast News) - Naked Wines cut interim losses despite a further slide in revenues on Tuesday, as it insisted it was now in a better position financially. The AIM-listed retailer said total revenues in the 26 weeks to 30 September fell 15%, or by 14% on a constancy currency basis, to £112.3m.

Adjusted earnings before interest and tax slumped to a £3.1m loss, from a £2.2m profit a year before, hit by lower sales and the impact of inventory liquidation.

Active members in the last 12 months eased 12%.

However, on a statutory basis, pre-tax losses narrowed to £5.6m from £9.7m, while costs were trimmed to £15.7m from £18.6m.

Naked Wines, which funds production costs for winemakers, was rocked by surging inflation and higher costs. Earlier this year it cut around 50 jobs, and in April named Rodrigo Maza as its new chief executive.

Maza said the business was now "in a better position, both financially and strategically", than it was at the start of the year.

"We now have a robust financial foundations, and our members remain loyal and engaged. Our strategic initiatives centred around customer acquisition and retention are generating learnings and we are currently experience solid trading during the peak season period," he said.

Maza reiterated Naked's full-year guidance, though he also acknowledged that December "remains important to delivery".

As at 1030 GMT, shares in Naked were down 2% at 56p.