Naked Wines Sales Pop During Lockdown
Sales at online wine seller Naked Wines soared 81% in April and May compared to a year ago as orders from British households surged during the country's coronavirus lockdown.
The business, which was developed by Majestic Wine, had to temporarily stop taking new orders last month after an unprecedented surge in sales.
"We entered the new financial year with good momentum as COVID-19 has influenced customer shopping behaviour and driven increased demand for the Naked Wines offer," the company said.
Grape harvests and wine production have been able to continue largely unaffected by the pandemic.
Nick Devlin, who took over as chief executive officer this year, said that he believes that the crisis will likely serve as an inflection point for consumers moving their wine purchases online.
Shares in Naked Wines have gained 70% on London's AIM market so far this year, on track for their best annual run since 2010 and faring far better than wider UK indexes.
However, the company stopped short of providing a full-year outlook due to the possibility of a consumer downturn in the second half of the year and pandemic uncertainties.
Pubs, restaurants and hotels are set to reopen in England early next month, which could mean that online alcohol orders will slow down as people venture out after months of restrictions.
Separately, the company said its current finance chief James Crawford will leave that role and be appointed managing director of the UK business.
Profit After Tax And Revenue
Profit after tax for the fiscal year ended March 30 came in at £8.2 million after a loss of £9.4 million a year earlier, while revenue climbed 13.7% to £202.9 million.