CANBERRA, Australia — An online venture set up to connect wine-loving Australians with independent producers has posted significantly higher full-year sales.
Naked Wines, which helps small winemakers find customers and vice versa, enjoyed a sales boom of 42 percent to AU$84.2 million ($62.6 million) over the 12 months to March 29.
Like many specialist online retailers, the company has benefited from Australians spending more money online during the pandemic.
That is supported by the company’s financial statements.
Repeat customer profit for Australia improved by 44 percent to AU$17.9 million ($13.3 million).
“Repeat customer sales continued to be strong in the first two months of Naked’s new financial year,” said Kennedy.
“Many people tried ordering through Naked Wines for the first time during lockdowns. Their decision to make repeat purchases showed they value the service.”
Despite the sales success, the Australian operation’s full-year earnings before interest and tax declined by 24 percent to AU$1.6 million ($1.2 million).
The company is listed on the London Stock Exchange, and filings show spending on gaining new Aussie customers rose by 89 percent to AU$10.2 million ($7.6 million).
Naked Wines had greater success overseas.
Earnings in its most mature market, the UK, jumped by 81 percent to AU$20.2 million. Britons helped sales rise by 66 percent.
In the US, increasing order frequency from customers helped sales climb 78 percent. Earnings for the US operation were higher by 43 percent to AU$3.7 million ($2.8 million).
However, the US market has the greatest potential, and Naked Wines leaders will be hoping the sales growth continues.
The Naked Wine group posted a full-year loss before tax of AU$19.8 million ($14.7 million). The company attributed this to spending 113 percent more on winning new customers.
In the financial year 2019, the volume of wine sold domestically in Australia amounted to 501 million liters, as per reports by Statista. It is an increase from the financial year 2018 and a continuation of the year-on-year growth trend over recent financial years.
“Per capita consumption of wine in Australia has remained largely consistent during recent years. In the 2018 financial year, Australians consumed just under 13.8 liters of white wine and 10.59 liters of red wine per person on average,” states the report.
“Additionally, just under four liters of other types of wine were consumed in the same year per person.”
The white wine production in Australia fell in the 2019 financial year to 514 million liters, compared to 611 million liters in 2018. However, red wine saw an increase in production in the same year to 684 million liters, suggesting a recovery from a production drop in the 2018 financial year.
(Edited by Vaibhav Pawar and Saptak Datta)