Full Year 2024 Naked Wines PLC Earnings Call Transcript
Key Points
- Naked Wines PLC (NWINF) has significantly improved its cash and liquidity position, with net cash almost doubling year on year to nearly GBP20 million.
- The company has successfully reduced its inventory by 11% year on year, marking the first reduction in three years.
- Operating G&A costs have been cut by 11% year on year, with further reductions expected to support profitability into FY25.
- A new credit facility with PNC provides GBP20 million to GBP30 million more usable liquidity, enhancing financial flexibility.
- The company has implemented a robust financial foundation and systems to ensure focus and alignment on top priorities, driving winemaker engagement and employee morale.
- Revenue declined by 13% year on year, primarily due to a reduction in the number of Angels (subscribers).
- Adjusted EBIT fell by 66% to GBP5 million, impacted by a GBP16 million reduction in repeat customer contribution.
- The company made a statutory loss, with nearly GBP17 million of adjusted items reported during the year, including inventory provisions and goodwill impairments.
- Customer recruitment remains challenging, with a net loss of customers despite efforts to stabilize the trend.
- The US market remains overstocked with 24 months of inventory, which is double the ideal level, posing a risk to profitability.
Hello, everyone, and welcome to Naked's FY24 results presentation. We're very excited that you're joining us. I'm Maza, I'll be sharing some thoughts with you later today as well as JC, our CFO; and Rowan, our Chairman.
I hand it over to you, Rowan.
Good morning, everybody. I'm delighted to report that Naked Wines is in much better shape today than we were 12 or even 6 months ago. We've laid solid foundations and the team have made substantial progress in fixing the problems of the past. Specifically, costs have been cut very substantially to match the current trading environment.
Inventory commitments have been cut intelligently so that we are now realizing cash from inventory and being done in a way which protects our core winemakers. And we now have a long-term funding facility in place that gives us the flexibility we need to restore Naked to growth.
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