Naked Wines has said profitability will be at the top end of guidance for the year ending April 3.

The online retailer said in a pre-close trading update today that FY23 adjusted EBIT is expected to be £15-18 million. The update follows a revised outlook for FY23 EBIT, issued back in January, from previous guidance of £9-13 million, to £13-17 million.

Naked said total revenue is in line with guidance at around £350 million.

“FY23 has been a challenging year but we have made significant strategic progress with a foundation for sustainable profitable growth,” said group chief executive Nick Devlin. “Our pivot to profit is on track, delivering profitability at the top end of our guidance. Our cost control actions have resulted in SG&A at the low end of our expectation, while destocking continues as planned.”

Devlin thanked the Naked team and its community of winemakers for their “continued support”.

Looking forward, he said the company enters FY24 as a “significantly larger and substantially more profitable business than we were pre-pandemic”.

“As stated in January, we expect a modest revenue decline near-term, but the demand outlook is stabilising, and we have identified opportunities for material cost savings in our fulfilment operations in the medium-term,” he added. “We continue to expect to generate cash in the second half of FY24 as stock levels reduce. Planned developments in our customer proposition will increase the rate of new customer recruitment and I look forward to sharing more detail on this, as well as detailed guidance for the year ahead, with our full year results presentation.”