Naked Wines sales jump 68% on pandemic boost By Investing.com

By Samuel Indyk

Investing.com – Naked Wines said revenue in the full year to 29th March increased 68% to £340.2mln, driven by an acceleration in the shift to online wine purchasing brought on by the pandemic.

US expansion

The company saw growth in all three of its geographies but particularly the United States, where sales grew 78% to £161.7mln. The US now represents almost 50% of the company’s total revenue and is the group’s largest market.

The company is now increasing focus on the US segment due to it representing the largest market opportunity and expectations of further sales growth.

“Since inception, our mission at Naked has been simple – to disrupt the wine industry for the benefit of customers, our winemakers and our people. In FY21, we made significant progress towards this objective,” said Naked Wines (LON:WINEW) CEO Nick Devlin. “It is clear to us that the pandemic has served to underscore the value of our business model in connecting winemakers and consumers directly and proven the opportunity before us.”

Outlook

The company has reported strong performance in the first two months of the financial year with total sales up 8% YoY on a constant currency basis.

In FY 2022, Naked Wines expects total sales of £355mln-£375mln, from £340.2mln in FY 2021. Investment in new customers is expected to stay steady at £40mln-£50mln versus £50mln in FY21.

“As we head into FY22, we are focussed on investing in the opportunity and executing against our strategic initiatives,” Devlin added.

At 09:18BST, shares in Naked Wines were trading lower by 0.6% at 788.0 pence per share.