By Joe Hoppe
Naked Wines PLC said Thursday that it swung to a fiscal 2022 pretax profit on reduced advertising costs, and that revenue rose.
The London-listed online wine retailer said that for the year ended March 28 it swung to a pretax profit of 2.9 million pounds ($3.6 million) from a pretax loss of GBP10.7 million a year prior. Advertising costs reduced to GBP34.1 million from GBP42.3 million in fiscal 2021, though fulfillment, sales and general and administrative costs all rose slightly.
Revenue rose to GBP350.3 million, from GBP340.2 million. The company said it had a repeat customer sales retention of 80%, ahead of its own expectations, and its subscription customer base grew 9% to 964,000.
The company said it was well-positioned to grow and invest further in the business, although it won’t pursue growth at any cost and intends to trade at around breakeven this year given the uncertain macroeconomic environment.
Total group sales for the new year are expected to be in the range of GBP345 million to GBP375 million.
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