Naked Wines has narrowed its operating loss for FY25 while continuing to execute its turnaround plan, despite a 14% drop in sales year-on-year.
The online wine retailer posted an operating loss of £3.3m for the year ended 31 March 2025, a marked improvement from the £11.8m loss reported in FY24.
Adjusted EBIT was a loss of £2.0m, down from a £5.0m profit the previous year, reflecting ongoing investments and costs related to inventory liquidation.
Revenue fell to £250.2m (FY24: £290.4m), driven mainly by a 14% decline in active members.
The company said this decrease primarily results from natural attrition among the unusually large customer cohorts acquired during the pandemic, alongside a more disciplined approach to new customer acquisition amid challenging market conditions.
Adjusted EBITDA excluding inventory liquidation and related costs declined 23% to £6.7m from £8.7m in FY24, reflecting the expense of resetting inventory levels.
Naked Wines has reduced its inventory from £166m at the start of FY24 to £108m by the end of FY25, with plans to generate around £40m in cash through further stock liquidation over the medium term.
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CEO Rodrigo Maza said: “FY25 was about stabilising our business and rebuilding confidence. We have made real progress, particularly in reducing excess inventory and generating cash. Our loyal Angels and Winemakers remain at the heart of what we do, and we’re focused on driving profitable growth.”
The company also highlighted growth in Australia, where membership increased for the first time in two years, though the UK and US bases continued to decline.
CFO Dominic Neary added: “With a strengthened financial foundation, positive free cash flow, and disciplined cost management delivering £15m in annualised savings, we are confident in our ability to grow adjusted EBITDA progressively to exceed £9m annually by the end of the medium term.”
Looking ahead, Naked Wines expects FY26 trading to remain in line with management expectations, with improved retention and further cash generation anticipated.
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