Naked Wines raises glass to revenue boost thanks to increased demand

Wine specialist Naked Wines has reported ‘good momentum’ in its performance despite the ongoing COVID-19 crisis.

The firm, which operates internationally, has said it has seen “strong demand” for its products through its online channels, and expects revenue for FY20 to be in excess of £200m.

In a trading update this morning, the group confirmed that as of March 30, it holds cash reserves of £50m and has no debt, with plans to invest in ‘aggressive customer recruitment’ throughout the year.

Nick Devlin, group chief executive, commented: “I am deeply proud of the way our teams have responded to the challenge of adapting to a new way of working in light of COVID-19 and their commitment to serving our customers.

“To the extent it’s safe to do so we are working hard to continue to connect wine drinkers with world class independent winemakers and bring a moment of normality and enjoyment into their homes without necessitating a visit to a store.

“In the short term, the introduction of social distancing has accelerated the shift in consumer buying behaviour towards online, leading to increased demand from both new and existing customers across all our markets.

“Over the medium-term, COVID-19 and its economic impact clearly creates uncertainty. However, Naked, with its advantaged consumer proposition and strong balance sheet is well placed to meet the challenges of a changing consumer environment.”

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