Naked Wines Plc · LSE:WINE
Naked Wines — Corporate Update (October 2022)
8 slides from Naked Wines's corporate update, Oct 20, 2022
Slide 1: Operational & Financial Update
Operational & Financial Update October 2022 Our Winemakers: Australia
Slide 2: We are committed to facing challenges head on
We are committed to facing challenges head on Liquidity concerns due to facility structure: • The previous covenants relating to repeat contribution were agreed on an assumption of continued rapid growth • Revised covenants based on adjusted EBITDA, set at a level where we have considerable headroom
Slide 3: We have renegotiated our credit facility to ensure flexibility
We have renegotiated our credit facility to ensure flexibility Why have a working capital facility? • Efficient financing of working capital cycle • Flexibility to align supply and demand through different periods of growth • Ability to fund inventory for growth initiatives prior to recruiting Angel
Slide 4: Inventory is peaking and forecast to reduce
Inventory is peaking and forecast to reduce Group inventory balance1 FY21: • Sales growth 68% • Flat inventory • Stock cover reduced • Availability gaps • Buy stock for future Destock plan strikes balance between: FY23: • Pivot to profit FY24: • Liquidity FY22: • Overstock • Destocking • Winemaker •
Slide 5: Update on H1 trading
Update on H1 trading H1’23 revenue growth +4% (constant currency -3%) in challenging environment • US: returned to growth in Q2, showing consumer resilience, with strong addressable market • UK: returned to growth in Q2, more competitive and lower margin market Strong profit delivery in H1’23, adjus
Slide 6: Outlook
Outlook KPI FY23 guidance FY23 guidance FY24 guidance 9 June revised Revenue £345m - 375m £340m - 360m - Revenue growth We have reshaped our plans to: (CCY) -4% to +4% -9% to -4% - Inv. In New Customer £30m - 40m £20m - 24m - Acquisition • Deliver a sustainable level of profit, Repeat Customer • Rig
Slide 7: Q&A
Q&A
Slide 8: Glossary of terms
Glossary of terms Adjusted (Adj) EBIT - Operating profit adjusted back for amortisation of acquired intangibles, impairment of goodwill, restructuring costs and fair value movement through the income statement on financial instruments and revaluation of funding cash balances held. Facility adjusted