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Naked Wines sees revenues soar 68%

Despite this, the group reported a pre-tax loss of £10.7m, which it said reflects the +113% increase in investment in new customers in the year

Naked Wines has seen its revenues increase by 68% to £340.2m in the year ending 29 March 2021 –  following a surge in new customers and sales. 

In a trading update, the pure play e-commerce wine retailer thanked an “accelerated shift” in online wine purchasing due to Covid-19 for the boost – alongside an investment in customer acquisition. 

The group, which is headed by Nick Devlin, also reported a 78% sales increase in its US segment – rising to £161.7m. Now, its American offering accounts for 48% of total sales and is its “largest market”. 

It comes after the group invested £50m into attracting new customers, compared to £23.5m last year. Naked Wines said this delivers a five year forecast payback of 3.0x. 

Despite this, the group reported a pre-tax loss of £10.7m, which it said reflects the +113% increase in investment in new customers in the year. 

Nick Devlin, group chief executive at Naked Wines, said: “In FY21, we made significant progress towards this objective. 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.

“As we head into FY22, we are focussed on investing in the opportunity and executing against our strategic initiatives, which are i) to invest in New Customers at attractive payback, ii) to enhance the customer proposition to improve LTV, iii) to leverage our scale to enhance value creation, and iv) to broaden and enhance our go-to-market strategy, driving growth.”

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