Naked Wines PLC (AIM:WINE, OTCQX:NWINF) reported full-year results in-line with expectations, boosted by repeat customer sales, strong retention rates and demand from existing members.
For the fiscal year ended 28 March, group sales rose 3% but surged 72% on a two-year basis when compared with 2020.
Sales retention was 80%, up a few percentage points on guidance, while repeat customer sales increased 11% year-on-year.
"Naked has built a platform as the world's number one [direct to consumer] DtC wine business, connecting 964k customers to over 225 world-class winemakers," Nick Devlin, chief executive, said.
“I am especially pleased to see the improvements to our customer experience and product range reflected in sustained retention rates above our expectations.”
The wine seller ended the year with £40mln cash and its inventory rose by £66mln to £143mln.
"We delivered full-year results in-line with our expectations highlighted by strong execution, expense control and positive EBIT,” Shawn Tabak, chief financial officer, said.
Devlin will outline its plans for long-term growth at its full-year results presentation in June.
“I'm pleased that Naked delivered growth following our step-change in scale in FY21, and we are well-positioned to take advantage of our long-term growth opportunity in the USA," Tabak added.
The company’s shares advanced 14% to 375p Wednesday morning.