Naked Wines promises to ‘recalibrate’ business with new growth plan
Naked Wines has released details of its new strategic growth plan as it promises to “recalibrate” the businesses to drive growth.
The wine seller also announced that its trading performance “continues to track in line with expectations” ahead of full-year results later this year.
Its share price rose more than 11 per cent in early trades.
Naked Wines said it has three new priorities: achieving £75m in cash, reaching £10m-£15m annual earnings before interest, tax, depreciation and amortisation (EDITDA) and achieving sustainable underlying revenue growth.
It expects revenue to stabilise by 2029 at £200-£225m, and that underlying EBITDA will progressively build to £10m-£15m in the medium term.
The company plans to “recalibrate around a profitable core” of members, save costs to free up cash, and restore customer retention back to 2019 levels.
“Investors need to pay attention – Naked Wines has turned a corner and there is a plan to achieve three things: significantly build cash… return the business to 5-10 per cent revenue growth… while underpinning EBITDA at circa £10m in the near-term, and commit to distributing this cash to shareholders,” Panmure Liberum analysts said.
Panmure raised its target price up to 150p from 50p. The stock is currently trading at 63p, having risen 38 per cent in the year to date.
“A year ago, I made a commitment to deliver real value to all our stakeholders. We now have a powerful plan that fulfills that promise, as we deliver on FY25 guidance even in the face of challenging market conditions,” CEO Rodrigo Maza said.
“We will look to commence distributions, unlock capital from surplus inventory, double down on serving our most valuable members, and transform how we attract and retain new customers.
“I am deeply grateful to the team for their commitment and relentless hard work. Together, we are turning challenges into opportunities and paving the way for a bright future,” Maze said.