Plant-based meals brand Huel’s latest accounts revealed revenues increased by 43% to £103 million in the ending in 31 July 2021.
The company that produces “nutritionally complete, sustainable food” also experienced a 45% sales increase in its core UK market amid rising DTC sales and increased grocery listings for its ready-to-drink ranges.
Meanwhile, its US market went up by 42% and the rest of the world including the EU and Japan increased by 43%.
However, Huel CEO James McMaster explained that the pandemic served as a “hindrance” as customers opted to cook from scratch at home.
As the supermarket range is based on the impulse market, increased footfall in stores have seen record sales.
“Ultimately we’ve got other drivers of the business and the increased focus on healthy foods, health and wellness are there whether consumers are locked down or not,” McMaster said.
Huel also made large investments into customer acquisition, NPD and team expansion as its EBITDA increased from £700,000 to £2 million.
Due to the previous financial year’s headline loss of £4.3 million, the plant-based company didn’t split out this year’s headline profitability figures.
Currently, McMasters is operating to break even despite Huel investing in international expansion, staffing and marketing.
“Hitting £100m in year six is rare and there are companies that do that by burning through lots of cash to get there. We are not one of those companies… we’ve got a sustainable gross margin.” McMaster added.
On top of this, Huel has not been immune to the effects of inflation on logistics, shipping as well as commodities and ingredients.
McMaster explained passing on the increasing prices to the consumer was a “live debate” but has no plans for imminent changes.