Naked Wines plc

Naked Wines reported adjusted EBITDA up 112% year over year to GBP 3.6 million. Management said cash generation was GBP 10 million in the half, and after a GBP 2 million share buyback completed in September, net cash increased by GBP 8 million versus 12 months ago. They also said gross profit margin was up materially, with roughly 50% of the improvement tied to inventory liquidation differences and the rest to underlying improvements in first-order loss, G&A savings and marketing efficiency. They noted a loss before tax that was affected by GBP 2 million of restructuring costs, one-off EPR costs that will unwind in H2, and GBP 2.6 million of inventory liquidation costs; they reiterated the full GBP 17 million inventory liquidation cost target over the medium term, spread across the next 3 years. Guidance was unchanged: the company said it is tracking in line with FY'26 guidance, peak trading is progressing satisfactorily, and it continues to expect ongoing distributions and progress on cash generation and cost savings.

Rodrigo Maza framed the first half as a period of structural change and execution, saying the business is making tangible progress on acquisition and retention after changes made at the start of the year. He stressed that Naked’s model is a “loop, not a funnel,” with retention as the foundation and growth coming from better customer experience, community advocacy, and selective tech modernization. His tone was confident but measured: he said the company remains very confident in the strategy shared in March and that early indicators, including higher referrals in the U.K. and stronger customer engagement, are encouraging.

Dominic Neary focused on the financial bridge from lower acquisition spend to improved profitability and cash. He highlighted GBP 10 million of cash generation, GBP 2 million of buybacks, adjusted EBITDA up 112% to GBP 3.6 million, and a material improvement in gross margin driven by both inventory liquidation effects and underlying operating leverage. He also cited GBP 1.5 million of G&A savings, after inflation translating into a GBP 1.1 million reduction in G&A costs, and said inefficient marketing investment is being reduced, creating more than GBP 5 million of efficiencies versus FY'25. He reiterated the plan to generate GBP 40 million of net cash from inventory, the medium-term target of up to GBP 14 million EBITDA, and an ongoing distribution policy that includes up to 50% of cash generation or adjusted EBITDA, whichever is lower.

On buybacks and distributions, management said the first GBP 2 million buyback was consistent with a broader policy of ongoing distributions and that further one-off returns are a question of when, not if, but depend on higher profitability and agreements with financial partners. On revenue mix, Maza said the company is still working through the impact of COVID cohorts and expects stabilization in the next couple of years, so disciplined acquisition has to deliver customers who fit Naked’s value proposition and provide healthy paybacks. In response to a question about pop-up stores and holiday products, management said they are exploring partnerships and real-world experiences, and noted strong holiday demand, including over 70,000 Christmas cases already delivered and Christmas gift boxes close to selling out.