Gousto ‘never better’ after cutting losses by over £50m
Gousto has said it’s never been in better shape after cutting its losses by more than £50m in 2024.
The recipe kit provider has reported a pre-tax loss of £20.3m for its latest financial year, having chalked up a loss of £75.6m in 2023.
That figure came after Gousto lost £157.5m in 2022 and almost £20m in 2021.
The last time Gousto reported a pre-tax profit was the £1m it achieved in the year to 25 December, 2020.
Gousto has also confirmed that its revenue increased in the year from £309m to £312m.
Since inception the company has raised nearly $350m (£255.6m) from global investors including SoftBank and Fidelity International.
In February this year, Gousto revealed plans to expand into the Republic of Ireland and create new jobs as it ramps up competition with HelloFresh.
Gousto said its financial goals were set to match the “challenging economic conditions which pervaded throughout 2024” and focused on profit and cash generation.
In a statement, the business said “these goals have been achieved in full through a singular focus on giving the customer more of what they want”.
Gousto pointed to its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) rising from £26m to a record £42m.
The company also said it generated positive free cashflow for the first time – a total of £3m.
For its current financial year, the firm is targeting revenue growth of between five and ten per cent alongside further improvements to its EBITDA and free cashflow.
Gousto wants to ‘reorientate back to growth’
Founder and chief executive Timo Boldt said: “Our investment in technology and data science is the great unlock, enabling us to meet customers’ growing demands for healthy, convenient meals through unrivalled recipe choice, alongside a financially strong, growing business with a double digit profit margin.”
He added: “2025 has started well. Our customer focus is paying off: sales are increasing, and our ‘share-of-stomach’ is growing well.
“However, our goal is not to be just the largest recipe kit provider but to fundamentally reshape the mainstream dinner market.
“The goal is huge and we will win share of the evening meal market through a relentless focus on the customer and continued improvements to the drivers of choice, convenience and health.”
The company added: “The time is right for Gousto to reorientate back to growth; to compete directly with the supermarkets and takeaways for the broader dinner market.
“Whilst macro economic conditions remain challenging and visibility poor, industry dynamics are turning positive.
“Online’s share of the UK grocery market is in the ascendancy once more, following the mean reversion to the physical supermarket shop after Covid and the advent of the cost of living crisis.
“Gousto has never been in better shape and is ready to capitalise on the opportunity.
“Profits and margins are at record levels and the business is self-sustaining – generating positive free cashflow in addition to £50m of cash in the bank at the start of 2025.
“Furthermore, Gousto has the capacity for growth within existing infrastructure, without the need for additional investment.
Offering is ‘streets ahead’
“From a proposition perspective, Gousto’s offering is streets ahead of direct competitors and is increasingly challenging the supermarkets, offering fresh food, inspiring recipes and the convenience that is so important for time-pressed consumers.
“Work on restarting the flywheel commenced in the second half of 2024 and is already evident in increased trading momentum and the recent expansion into the Republic of Ireland.
“Trading in the fourth quarter of 2024 saw a material uptick in growth which has continued into 2025. As a result Gousto is winning category share.
“The continued focus on healthier/quicker recipes, combined with expanded trials of next day delivery and further reductions to standard delivery times, should all compound into further momentum.”