Gousto, the recipe kit provider, has reported a significant reduction in its losses by over £50m in 2024.
The company posted a pre-tax loss of £20.3m for the most recent financial year, a marked improvement from the £75.6m loss recorded in 2023, as reported by City AM.
This follows a loss of £157.5m in 2023 and nearly £20m in 2021.
The last time Gousto reported a pre-tax profit was in the year ending 25 December, 2020, when it achieved £1m.
The firm also confirmed an increase in revenue for the year, rising from £309m to £312m.
Since its inception, Gousto has raised almost $350m (£255.6m) from global investors, including SoftBank and Fidelity International.
In February this year, the company announced plans to expand into the Republic of Ireland and create new jobs, intensifying competition with HelloFresh.
Gousto stated that its financial goals were designed to align with the “challenging economic conditions which pervaded throughout 2024,” with a focus on profit and cash generation.
In a statement, the company said: “these goals have been achieved in full through a singular focus on giving the customer more of what they want.”
Gousto highlighted its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation), which rose from £26m to a record £42m.
The company also reported generating positive free cashflow for the first time, totalling £3m.
The company is aiming for a revenue increase of 5% to 10% this year, coupled with further enhancements in EBITDA and free cash flow.
Gousto wants to ‘reorientate back to growth’
Timo Boldt, founder and CEO, commented: “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 continued by saying: “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 firm also stated: “The time is right for Gousto to reorientate back to growth; to compete directly with the supermarkets and takeaways for the broader dinner market.”
“While macroeconomic 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.”
