Naked Wines stock drops 35% as growth not ‘at any cost’

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Business intends to do business ‘in or near break even’ this year

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nline retailer Naked Wines saw its stock price fall 35% this morning despite posting a pre-tax profit of £2.9 million, with its full-year results losing £10.7 million on March 28.

Revenue also increased by 3.0% to £350.3 million from £340.2 million. However, the results showed that the company’s cash balance had swelled to £40 million from £85 million a year earlier, causing panic throughout the market.

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The company’s cost remained the same as last year as advertising costs fell from £42.3 million to £34.1 million, but fulfillment costs increased from £58.3 million to £62.6 million.

The company was bullish and said it would not pursue growth “at any cost” and that it intended to trade “at or near breakeven this year”.

Naked Wines Group CEO Nick Devlin said the company is “well positioned to keep growing” amid a “changing consumer environment”.

He said: “Over the past year we have reduced investments responsibly as we weathered the challenges of inflation. In that context, I would like to reiterate in sales to members supported by sales retention of 80% above our expectations for the year. I am pleased with our ability to deliver substantial growth and profitability.

Devlin said his position was a responsible balance to look forward to 2023 and that he was “aware of the levels of macro-economic uncertainty”, but saw opportunities and “for a disruptive model like ours to gain traction in difficult conditions”. capability”. There are times when consumers reevaluate their purchasing choices”.

Naked Wines was founded by Rowan Gormley in 2008 and was acquired by bricks and mortar player Majestic Wines in 2015.

Credit: www.standard.co.uk /

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