Naked Wines PLC (AIM:WINE, OTCQX:NWINF) has said its profits for the past year are likely to be at the top end or slightly above of its previous guidance.
Total revenue for the 53 weeks to 3 April 2023 will be circa £350mln, the online wine merchant said in a statement, almost precisely flat on a reported basis, but down 6-8% on a comparable basis if removing the extra week compared to the previous year.
Underlying profits (adjusted EBIT) are expected to be £15-18mln, it added, compared to its guidance in January of £13-17mln and the final result of £2mln in the prior year.
As part of a strategy reset in October, the AIM-listed company abandoned its growth-at-all-costs strategy to focus on profitability.
Reported profit before tax (PBT) is expected to be £2-5mln, which it said was consistent with the current City analyst consensus and compared to a £2.9mln PBT the previous year and an average £8mln loss for the two years before that.
"FY23 has been a challenging year but we have made significant strategic progress with a foundation for sustainable profitable growth,” said chief executive Nick Devlin in the statement, “Our pivot to profit is on track, delivering profitability at the top end of our guidance.”
He added that cost controls have resulted in non-production expenses coming in at the low end of expectations, while destocking continues as planned.