UK markets closed
  • NIKKEI 225

    29,331.37
    +518.77 (+1.80%)
     
  • HANG SENG

    28,637.46
    +219.46 (+0.77%)
     
  • CRUDE OIL

    64.83
    -0.80 (-1.22%)
     
  • GOLD FUTURES

    1,814.40
    +30.10 (+1.69%)
     
  • DOW

    34,548.53
    +318.19 (+0.93%)
     
  • BTC-GBP

    40,344.68
    -908.18 (-2.20%)
     
  • CMC Crypto 200

    1,456.23
    -15.18 (-1.03%)
     
  • ^IXIC

    13,632.84
    +50.42 (+0.37%)
     
  • ^FTAS

    4,032.10
    +20.59 (+0.51%)
     

Naked Wines benefits from at-home drinking with strong US growth

August Graham
·2-min read

Naked Wines made more than £150 million in the US over the last year as the company’s American market proved its most important.

The company said that its US business had grown by 75% across the year, and £9 in every £20 of wine it sells is now in the country.

It puts the US ahead of the UK as the firm’s single biggest market.

Overall sales also grew, but slower than in the US. Across the group sales were 68% higher between April 2020 and March this year than in the 12 months before.

The firm was ahead of expectations in November, when Naked Wines told investors to prepare for sales growth between 55% and 65%.

WATCH: Here's Why Natural Wines Are Becoming So Trend

“I’m exceptionally proud of the performance we have delivered over the last year. Our significant growth is a testament to the customer demand for a disruptive online wine model that offers direct connection to the world’s top winemakers,” said chief executive Nick Devlin.

He said the company’s new size had allowed it to benefit from scale economies that make it more competitive.

“Whilst in some ways 2021 is as difficult to predict as 2020, I believe we have seen an enduring shift of demand online across multiple categories.

“Ultimately, whilst Covid-19 has driven the trial of many online models, the long-term winners will be the businesses that offer customers a genuinely differentiated offer, I firmly believe Naked will be one of those long-term winners.”

Analysts at Liberum said that despite the results, Naked Wines will continue to make a loss as it invests money back into getting more customers and inventory.

Naked Wines will present its full-year results on June 11.

WATCH: How to prevent getting into debt