DAVY VIEW

Following Naked Wines’ (WINE) Q323 trading update, we again lower our revenue forecasts and raise our adjusted EBIT expectations for FY23. FY23/24/25 revenue comes down 0.3%, 7% and 7% respectively, while FY23 adjusted EBIT is increased from £10.5m to £14.8m. That said, with c.£12m in restructuring costs alone in FY23, there remains a sizable gap between ‘adjusted’ and ‘reported’ metrics. While we have no visibility over FY24/25 adjusted items, one would not bet against further inventory provisions and/or other write-offs. WINE’s cash position remains equally opaque, with continued reliance on c.£88m of Angel funds, alongside a US$60m revolving credit facility (RCF).