Naked Wines has reported a return to positive cash flow despite revenues falling 14%.
The online wine retailer announced plans to begin shareholder distributions, despite revenues falling 14% to £250.2m for the year ending 31 March 2025.
Naked Wines reached a positive free cash flow of £18.5m, up from £6.7m the previous year, which it said was primarily driven by a significant reduction in excess inventory. Total stock levels fell £37m to £108m as the retailer focused on liquidating surplus wine through bulk sales.
Chief executive Rodrigo Maza, who joined during the year alongside new chief financial officer Dominic Neary, said the company had “taken big steps to stabilise the business” and built a platform for future growth.
“Over the course of FY25, we have taken big steps to stabilise the business, to rebuild the team, and ground our strategy in real data and insights.” he said.
“We’ve announced a clear disciplined plan to reach in excess of £70m cash. We are already executing with more focus, more discipline, and more conviction than ever. And while there’s still work to do, I genuinely believe we have built the platform to take Naked to the next stage of growth; FY26 will be an exciting year.”
The retailer said it had outlined new strategic plan targeting cash generation of over £70m over the medium term, with £15m of cost savings actioned in the first quarter of the new financial year.
For 2026, Naked Wines anticipates revenues of £200m-£216m, with adjusted EBITDA of £5.5m-£7.5m.
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