(Alliance News) - Naked Wines PLC on Wednesday reported a double-digit annual revenue rise, helped by growth in the US and a boost in demand towards the end of the period due to the Covid-19 pandemic.
Revenue from continuing operations in the year ended March 30 rose 14% to GBP202.9 million from GBP178.4 million, and its pretax loss narrowed to GBP5.4 million from GBP9.9 million.
The US was a key revenue growth driver for the wine business. Revenue in the US climbed 20% to GBP90.9 million. The Norwich-based firm reported revenue growth of 11% to GBP80.0 million in the UK.
Including discontinued operations, revenue fell 17% to GBP419.7 million from GBP506.1 million.
Naked Wines announced the GBP95 million sale of its Majestic Wine and Les Celliers de Calaisin units in August. Following this, it changed its name to Naked Wines from Majestic Wine and became an entirely online business once the deal was completed in December.
Chief Executive Nick Devlin said: "I'm delighted to report a strong set of results to conclude a year of transition for Naked Wines. We are ending the year with great momentum behind our growth plans and a simplified, well-capitalised online pureplay model that is ideally suited to the current climate.
"I'm proud of the way they have allowed Naked to respond to the challenges posed initially by Covid-19 and subsequently by the sharp acceleration in growth we have seen since mid-March."
The company added that revenue in the first two months of financial 2021 was 81% higher annually.
Devlin added: "Whilst predictions are harder than ever this year, I am excited about our plans for growth and confident that the mission of Naked to connect everyday wine drinkers to the world's best winemakers is more relevant than ever. I believe the enduring impact of Covid-19 will be to accelerate trends towards direct, online models in categories like wine and that Naked is well positioned to deliver."
Naked Wines added that Chief Financial Officer James Crawford will soon step down from the board, he will be appointed as permanent managing director of the company's UK arm. The role in the UK business has been one he has held in interim, alongside his CFO duties, since November.
A search for his successor as CFO has kicked off, though Crawford will remain in the role until a replacement is slotted in.
Shares in the company were 6.3% higher at 391.00 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Naked Wine (WINE)