TIDMWINE
RNS Number : 5096V
Naked Wines PLC
15 April 2021
15 April 2021
Naked Wines plc
("Naked Wines" or "Group")
Group sales guidance exceeded, capturing large US opportunity
with +75% US sales growth
Trading update for the fiscal year ending 29 March 2021
The Group delivered strong performance across all three
geographies, particularly the US, driven by a significant increase
in demand for its direct-to-consumer wine subscription model, and
from an accelerated shift in consumer behaviour toward online wine
purchases due to the COVID-19 pandemic.
FY2021 highlights
-- Group sales growth of approximately 68%, exceeding the upper-end of guidance(1) ;
-- US business grew +75%, surpassing GBP150 million of sales,
and now representing approximately 45% of Group sales;
-- Increased levels of Investment in New Customers, c.10% above
the upper-end of guidance, at sustained higher payback than
target;
-- Repeat Customer Contribution c.5% above the high-end of
guidance, with repeat contribution margins improving YoY as
benefits of scale realised;
-- Group Active Angels base of 885k, a YoY increase of approximately 50%
-- Fixed costs in line with guidance
-- Healthy balance sheet with cash to fund growth investment and stock requirements in FY22
Nick Devlin, Chief Executive Officer, commented:
"I'm exceptionally proud of the performance we have delivered
over the last year. Our significant growth is a testament to the
customer demand for a disruptive online wine model that offers
direct connection to the world's top winemakers. I'd like to thank
all our colleagues for their continued dedication throughout a
challenging year. We end this year not just as a bigger business,
but a better one, benefitting from scale economies that have
reinforced our competitive position and enhanced our appeal to both
customers and top winemaking talent.
Whilst in some ways 2021 is as difficult to predict as 2020, I
believe we have seen an enduring shift of demand online across
multiple categories. Ultimately whilst COVID has driven the trial
of many online models, the long-term winners will be the businesses
that offer customers a genuinely differentiated offer: I firmly
believe Naked will be one of those long-term winners.
We are committed to further strengthening our proposition and
have identified multiple areas to invest in enhancing our customer
and wine proposition in the year ahead. The past twelve months have
been exceptionally challenging for winemakers the world over and
I'm delighted we have been able to use our platform to support over
235 extremely talented independent winemakers to not just survive
but grow with us. More than ever I'm excited to work creating a
unique platform that connects some of the world's best winemakers
directly with a passionate community of wine drinkers."
FY2021 Results
Full Year results for the 52 weeks ended 29 March 2021 will be
announced on 11 June 2021. A presentation for institutional
investors and analysts will be held virtually on 11 June 2021 at
2pm BST / 6am PDT. Webcast and conference call details are
available by contacting IR@nakedwines.com.
(1) Guidance at 19 November 2020 stated expected sales growth of
+55-65% ; expected repeat contribution of GBP75-80m; expected
investment in new customers of GBP40-45m; expected fixed costs of
GBP37-39m.
Definitions:
Active Angels: the number of unique Angels, customers, who
deposit funds into their Angel account each month to spend on the
wines on our website, placing an order in the 12 month period.
New Customer Acquisition costs : the costs incurred to acquire
new customers through tested marketing channels
Investment in New Customers: the contribution earned from sales
to new customers.
Repeat Customer: A customer ('Angel') who has subscribed and
made their first monthly subscription payment.
Repeat Customer Contribution: the profit attributable to sales
meeting the definition of sales to repeat customers after
fulfilment and service costs.
Repeat Customer Sales: revenue derived from orders placed by
customers meeting our definition of a repeat customer at the time
of ordering.
Repeat Customer Sales Retention : the proportion of sales made
to customers who met our definition of "Repeat" last year that were
realised again this year from the same customers. Using our website
data, the population who were subscribers in the prior year are
identified and their sales in the current year then assessed. This
is done for each month and summed to calculate the full year
retention.
Fixed Costs: administrative costs excluding marketing spend.
Payback: the ratio of the future contribution we expect to earn
from the customers recruited this year to the investment we made
recruiting them.
For further information, please contact:
Naked Wines plc
Nick Devlin, Chief Executive Officer ir@nakedwines.com
Shawn Tabak, Chief Financial Officer
Investec (Joint Broker)
David Flin / Carlton Nelson Tel: 0207 597 5970
Jefferies (Joint Broker)
Ed Matthews / David Genis / Harry Clements Tel: 0207 029 8000
Instinctif Partners (PR Agency)
Damian Reece / Guy Scarborough / Sarah Hourahane Tel: 0207 457 2020
or 07931 598 593
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 more than 850,000
Angel members 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
235 of the world's best independent winemakers making over 1,500
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTIIMFTMTIBBMB
(END) Dow Jones Newswires
April 15, 2021 02:00 ET (06:00 GMT)
Naked Wines (LSE:WINE)
Historical Stock Chart
From Feb 2024 to Mar 2024
Naked Wines (LSE:WINE)
Historical Stock Chart
From Mar 2023 to Mar 2024