Naked Wines PLC AGM Trading Update (2898V)
August 06 2020 - 2:00AM
UK Regulatory
TIDMWINE
RNS Number : 2898V
Naked Wines PLC
06 August 2020
Naked Wines plc
("Naked" or the "Group")
AGM Trading Update
Naked Wines plc is holding its Annual General Meeting ("AGM") at
11.30am BST today. In compliance with new legislation relating to
company meetings, which came into force on 26 June 2020, the
Company will arrange for a quorum for the AGM to be in place by
telephone. Due to Covid-19 restrictions in place, the AGM is a
closed meeting. While shareholders are unable to attend in person,
they are able to submit questions pertaining to AGM business via
the Company Secretary at Cosec@nakedwines.com . All other investor
questions may be directed to the Investor Relations team at
IR@nakedwines.com .
As announced on 24 July 2020, John Walden will step down as
Chairman following the AGM to be succeeded by Ian Harding until
Ian's scheduled retirement from the Board in the summer of 2021.
The Board would like to extend its thanks to John for his guidance
and support and wishes him well for the future.
Trading Update
The Group continues to trade strongly, with total sales in
July(1) expected to be +73% vs the prior year. This brings sales
growth in the first four months of the financial year to +76%,
driven by:
-- New customer sales +185%, from investment in new customers +115%
-- Repeat customer sales +58% with sales retention of 91%.
The Group has also delivered a c.3 percentage point improvement
in repeat contribution margin.
While significant uncertainty remains for the remainder of the
year around the ongoing response to Covid-19 and the resultant
macro-economic challenges, the Board has reviewed potential
scenarios for the Group's performance this year.
Our central case assumes that we see the heightened levels of
new customers and repeat purchase frequency reduce over summer,
entering peak trading with an increased customer base and more
normalised trading patterns for each customer. In this event the
board would anticipate:
-- Total sales growth for the full year of around 40%
-- Repeat customer contribution of GBP65-70m
-- Investment in new customers of GBP35-40m, at lower year on
year margins, impacted by our weighting of first orders to smaller
cases to optimise inventory usage
-- Fixed costs of GBP32-34m, plus Marketing R&D spend of GBP3m as previously indicated
We have reviewed, and continue to maintain, a range of active
scenarios for the full year that include both more optimistic and
pessimistic scenarios than this central case driven by potential
outcomes from sustained lockdown driving accelerated trading
through to a deep recession driving high levels of cancellation and
less frequent purchasing.
As we consider how to manage the changing environment the Board
intends that we remain committed to maximising our investment in
new customer acquisition subject to meeting our returns criteria
and will invest in inventory and operational capacity to support
this.
1. Preliminary and unaudited
Nick Devlin, CEO, commented:
"I'm pleased to report continued strong rates of new customer
growth and particularly strong repeat trading momentum as we see
evidence of new customers recruited during the Covid-19 pandemic
converting to repeat customers. I'm especially grateful for the
incredible work of our teams around the world who have enabled us
to deliver this step change in performance under challenging
operating conditions.
The evidence we are seeing across our markets is consistent with
our view that Covid-19 has served as an inflection point for the
online wine market, with Naked uniquely placed to benefit from
that. We have the balance sheet strength and operational agility to
enable Naked to continue to focus on ways to accelerate growth and
take advantage of the opportunities presented by the new and
evolving consumer landscape."
For further information, please contact:
Naked Wines plc ir@nakedwines.com
Nick Devlin, Chief Executive
Officer
James Crawford, Chief Financial
Officer
Investec Tel: 0207 597 5970
(NOMAD & Joint Corporate Broker)
David Flin / Carlton Nelson /
Tejas Padalkar
Jefferies International Limited Tel: 0207 029 8000
(Joint Corporate Broker)
Ed Matthews / Harry Clements
Instinctif Partners (PR Agency) Tel: 07931 598 593 / 07917 178
Damian Reece / Guy Scarborough 920
About Naked Wines plc
Naked Wines connects everyday wine drinkers with the world's
best independent winemakers.
Why? Because we think it's a better deal for everyone. Talented
winemakers get the support, funding and freedom they need to make
the best wine they've ever made. The wine drinkers who support them
get much better wine at much better prices than traditional
retail.
It's a unique business model. Naked Wines customers commit to a
fixed prepayment each month which goes towards their next purchase.
Naked in turn funds the production costs for winemakers, generating
savings that are passed back to its customers. It creates a
virtuous circle that benefits both wine drinker and winemaker.
Our mission is to change the way the whole wine industry works
for the better. In the last year, we have served nearly 600,000
individual customers in the US, UK and Australia, making us a
leading player in the fast growing direct-to-consumer wine
market.
Our customers (who we call Angels) have direct access to over
200 of the world's best independent winemakers making over 1,000
quality wines in 19 different countries. We collaborate with some
of the world's best independent winemakers like Matt Parish
(Beringer, Stags' Leap) and 8-time Winemaker of the Year Daryl
Groom (Penfolds Grange).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFLFIATTIEIII
(END) Dow Jones Newswires
August 06, 2020 02:00 ET (06:00 GMT)
Naked Wines (LSE:WINE)
Historical Stock Chart
From Apr 2024 to May 2024
Naked Wines (LSE:WINE)
Historical Stock Chart
From May 2023 to May 2024