Naked Wines upgrades underlying profit forecast
Naked Wines has said solid festive trading has led it to increase its full year adjusted EBIT outlook despite medium term conditions remaining challenging.
The company now expects EBIT to come in at £13 million to £17 million compared to a previous guidance of £9 million to £13 million.
While total sales were flat in its third quarter ending 26 December, sales in the UK and Australia fell by 1% and 3% respectively. However sales in the US recorded an uplift of 2%.
Naked Wines is expecting to spend £20 million to £24 million on new customer investment in the current financial year, which is around 40% below FY22 levels. It said this is likely to result in a modest decline in revenue in FY24, although the company will be evaluating a number of options to improve this outlook .
Nick Devlin, group chief executive of Naked Wines, said: “Against a challenging market environment the robust performance of our repeat customers reflects the enduring appeal of Naked’s core proposition combined with strong operational performance – with increased throughput from our investment in warehouse automation supporting an especially strong peak in the UK.
“Costs have remained tightly controlled with SG&A spend outlook at the bottom end of our guidance. Combining this with repeat contribution profit at the top end of expectations we now expect FY23 adjusted EBIT to be in the range of £13 million to £17 million.”
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