Naked Wines Plc · LSE:WINE
Naked Wines — H1 FY2025 Earnings Presentation
25 slides from Naked Wines's earnings presentation, Dec 10, 2024
Slide 1: HY25 Results Presentation
HY25 Results Presentation 10th December 2024
Slide 2: Today's Presenters
Today’s Presenters Rodrigo Maza Dominic Neary Chief Executive Officer Chief Financial Officer ● Before becoming CEO on 2 April 2024, Maza was ● Joined Naked as CFO on 11 November 2024 Naked’s UK Managing Director since September 2023 ● 5 years as CFO, most recently at MindGym plc. ● Launched and sca
Slide 3: Overview
Overview Financials Strategy Outlook Robust financial foundations, Comprehensive Strategic Peak season trading so far with notable improvements in Initiatives and Testing has been solid liquidity and cash programme progressing FY25 performance currently in line with guidance according to plan 3 Nake
Slide 4: HY25 Highlights
HY25 Highlights Dominic Neary Group CFO
Slide 5: Performance in line with guidance
Performance in line with guidance Reduced revenue broadly in line with membership movement £112.3m £15.7m £0.6m Revenue G&A Adj. EBIT before inv. liq* £2.9m G&A reduction on HY24 reflects savings program implemented in FY24 -14% vs HY24 -£2.9m vs HY24 -£2.0m vs HY24 Adj. EBIT in line with management
Slide 6: Liquidity and cash is strong and improving
Liquidity and cash is strong and improving -£2.6m Inventory has fallen, but still more than £30m of excess stock in the US £9.1m 86% of Angel funds are with our -£1.6m core members. Movements will track behind decline/growth in £22.9m revenue £14.5m Supported by new credit facility, we £4.7m -£4.1m
Slide 7: Thoughts after 1st month
Thoughts after 1st month Our membership is Digital test and Multiple routes to unique and valuable learn is progressing profit/cash ● Customer NPS is excellent at 76 ● Repeat sales retention has ● Significant efficiencies from (73 PY) improved from 72% to 74% move to non-voucher channels from H2 and
Slide 8: Strategic Review
Strategic Review Rodrigo Maza Group CEO
Slide 9: Customer Value Proposition is landing
Customer Value Proposition is landing. Thanks Janet from Sheffield ● Ongoing alignment across the business to our core customer value proposition ● Regular and ongoing feedback that it’s landing with our new and existing member base 9 Naked Wines plc 2025 Half Year Results Presentation
Slide 10: Growth Levers
Growth Levers Acquisition Personalisation Retention Get the right customers Get early customers Effectively manage through the door… into the relationship customers and deliver for the right reasons! that’s right… for them! value… beyond deals! 10 Naked Wines plc 2025 Half Year Results Presentation
Slide 11: In H1 we learnt from both positive and negative testing results
In H1 we learnt from both positive and negative testing results Learnings in H1 Impact on H2 and into FY26 ➔ Voucher inefficiency (UK&US) CAC ➔ New investment efficiency ➔ Earned media (Aus) CAC realised Acquisition ➔ ££ efficiencies identified ➔ Playbook for earned media ➔ ↓ CAC ➔ Scaled new member
Slide 12: Acquisition - testing has identified significant efficiencies
Acquisition - Acquisition testing has identified significant efficiencies to reverse the recent trend in payback Customer acquisition costs increases have been a key driver in the decline of payback to 1.0x in HY25 (1.3x HY24), largely reflecting the industry-wide decline in the voucher mechanic. Ef
Slide 13: Acquisition - Priority channels showing flywheel effect
Acquisition - Priority channels showing flywheel effect Finding the right channels to scale continues to be a top priority. Priority channels are driving a virtuous cycle, where PR and content creators get wide reach cost-effectively, then member conversion is more efficient via Meta, member referra
Slide 14: Personalisation - New user conversion significantly improved
Personalisation - New user conversion significantly improved Recently re-launched new user journeys are delivering significant improvements in conversion, most notably the newly launched Angel acquisition journey, where we have seen improved UK conversion uplifts between 16% and 43%. New Angel journ
Slide 15: Retention - up 200bps on last year for our mature customer base
Retention - up 200bps on last year for our mature customer base Material improvements in retention are feeding through to KPI’s, including the impact of redesigned onboarding flows for new members in their first 90 days. We continue to improve our onsite experience to remove the guesswork from wine.
Slide 16: Our Commitment
Our Commitment Transparent & Focused & Responsible & Scientific Disciplined Pragmatic Impactful testing, focus Guardrails on SG&A, MKT Performance review underway on clear and consistent investment, capital, and evaluating options to maximise comms stock shareholder value 16 Naked Wines plc 2025 Hal
Slide 17: Summary
Summary Performance review to Financials in line with Strategic test & learn maximise shareholder guidance agenda happening at pace value Early peak season trading solid Payback challenge and Conclusions from testing causation clear, efficiencies programme ready in Q4 FY25 Liquidity and cash continu
Slide 18: Q&A
Q&A Q&A 18 Naked Wines plc 2025 Half Year Results Presentation
Slide 19: Appendix
Q&A Appendix 19 Naked Wines plc 2025 Half Year Results Presentation
Slide 20: Disclaimer
Disclaimer This presentation (the “Presentation”) has been produced for discussion purposes only. The information contained in the Presentation is not intended for any other use. The Presentation is being made only to, and is only directed at, persons to whom it may lawfully be communicated (“releva
Slide 21: Glossary of terms
Glossary of terms Alternative performance measures Adjusted EBIT Operating profit adjusted for amortisation of acquired intangibles, acquisition costs, impairment of goodwill, restructuring costs, fair value movement through the income statement on financial instruments and revaluation of funding ca
Slide 22: Glossary of terms (continued)
Glossary of terms (continued) Investment measures 5-Year Forecast Payback The ratio of projected future Repeat Customer contribution we expect to earn from the new customers recruited in the year, divided by the Investment in New Customers. We forecast contribution at a customer level using a machin
Slide 23: Glossary of terms (continued)
Glossary of terms (continued) Customer experience KPIs 5* customer service The percentage of feedback ratings received by our Customer Happiness teams that expressed 5* satisfaction on a scale of 1 to 5. Product availability The average percentage of products we have defined as core to the portfolio
Slide 24: Glossary of terms (continued)
Glossary of terms (continued) Definitions AGM Annual General Meeting Angel A customer who deposits funds into their account each month to spend on the wines on our website. CAGR Compound annual growth rate. The year-on-year growth rate required for a number of years for a value to grow from its begi
Slide 25: Guidance remains unchanged
Guidance remains unchanged £m FY25 Revenue 240 - 270 Revenue trend (%) (16)% - (4)% Repeat contribution 54 - 65 New customer investment (22) - (25) G&A (29) - (31) Adj EBIT exc inventory liquidation 3-8 Inventory liquidation losses (2) - (5) Adj EBIT inc inventory liquidation (2) - 6 Finance charges