Naked Wines profits rise as Christmas sales boost turnaround success

Naked Wines has announced that its profits for the current financial year are set to reach the upper end of forecasts, following a strong trading period in the lead up to Christmas. The online wine retailer issued a trading update indicating its adjusted earnings before interest, tax and other items for the year ending March 2026 will be at the upper end of the City’s projected range, between £5.5 million and £7.5 million.

Although profits are up, Naked Wines has stated that revenues will be towards the lower end of its guidance, with expected turnover in the range of £200 million to £216 million. The firm continues to implement a turnaround strategy that aims to create a smaller yet more profitable operation. This positive outlook comes after the company reported a more than twofold increase in half year adjusted profits, rising to £3.6 million in the six months to September from £1.7 million in the previous year.

Chief executive Rodrigo Maza, who has spearheaded the company’s strategic realignment, is focusing on core profitable members and enforcing strict cost controls. Naked Wines has consciously decided against pursuing unprofitable revenue streams and has reduced inefficient marketing expenditure. The company’s financial discipline has resulted in a net cash position that rose by £8.2 million, reaching £31.1 million in the first half of the year.

Operating in Britain, Australia and the United States, Naked Wines supports nearly 290 independent winemakers in 23 countries through its network of customers, referred to as angels. The company, which found success during the Covid lockdowns, was founded in 2008 by South African entrepreneur Rowan Gormley. His vision was to improve the wine market for consumers by providing quality wines from talented producers at reasonable prices.

Naked Wines’ shares have experienced notable growth, climbing over 50 percent compared to the previous year and most recently rising to 69 pence. The company continues to focus on profitability while applying steady cost management across all operations.