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Naked Wines returns to profit in half-year results

Growth over the period was partially offset by a decline in new customer sales, however, with what it deemed a  ‘tough comparison’ to the first half of 2021

Naked Wines has seen its profits before tax hit £1.3m in the first half of 2022, up from a loss of £8.9m the year prior. 

Over the period, total sales rose by 6% on a constant currency basis and 1% on a reported basis against last year, and by 82% on a reported basis against H120 to £159.3m.

The rise in sales was largely driven by a “strong” repeat customer sales retention, according to the group. 

Growth over the period was partially offset by a decline in new customer sales, however, with what it deemed a  “tough comparison” to the first half of 2021, as more new customers turned to the group amid the ongoing lockdowns. 

Nevertheless, its repeat customer contribution profit rose by 10% to £41.3m, largely driven by a 21% increase in repeat customer sales.

Nick Devlin, group CEO, said: “We have a large long-term value creation opportunity driven by a disruptive business model, an underpenetrated $25 billion total addressable market (TAM), exceptional winemakers and wine, and a loyal customer base with attractive unit economics and recurring revenues. 

“Our disruptive business model connects consumers directly with winemakers, stripping out the cost of traditional sales and distribution and delivering consumers exclusive world-class wines at fair prices and with a genuine connection to their maker.”

He added: “I’m delighted by the progress we have made so far this year in further strengthening our winemaker lineup and customer proposition. We are now serving a global community of 947,000 members – an increase of 25% over the last year – reflecting sustained consumer desire for an alternative to traditional wine distribution.”

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