Losses have grown at Modern Milkman am online grocery business despite a jump in its sales. It has reported pre-tax losses of £23m for 2022 after having incurred a loss of £15.4m for the prior year. Turnover had increased from £24.7m to £45.5m over the same period.
During the year, the company raised £50m through a Series C investment round which involved current backers Insight Partners and ETF Partners. It also attracted backing of £2.25m from Praetura Ventures as part of the round.
Modern Milkman delivers eco-friendly produce via a subscription model. Products include milk, juice, eggs, butter, bread, fruit and vegetables in plastic-free packaging and returnable glass bottles.
A statement from the board said: “The company continued to grow rapidly in 2022, achieving an 84 per cent year-on-year increase in revenues underpinned by growth in the customer base as well as improved basket spend.
“This was delivered while facing into the worst macroeconomic headwinds for a generation, with significant input price inflation exacerbated by fuel and energy price hikes alongside labour shortages and disrupted supply chains.
“In the second half of 2022, the business launched a profitability improvement program, which by Q4 had delivered a 53 per cent improvement in operating profit margin compared to the same period last year.
“On a full-year basis, operating profit margin improved by 12 per cent compared to 2021, with the major part of the improvement arising in 2023, putting the business on a more sustainable foundation for the future”
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