Prime Hydration profits slump as strategic review launched
Youtuber-backed energy drink brand Prime Hydration has launched a strategic review to assess its long-term strategy, following its UK turnover plummeting by more than 70% in 2024.
According to newly filed accounts for Prime Hydration UK Ltd, first reported by City AM, turnover fell from £112.2m to just £32.8m in the 12 months to year-end, while pre-tax profit dropped from £4.3m to under £1m.
Likewise, gross profits were also down sharply, falling 85% to £3.1m, with net profit plummeting to just £312,000, a 91.6% decline year-on-year.
Prime, backed by influencers Logan Paul and KSI, launched in the UK in mid-2022 with considerable fanfare.
It immediately shot to popularity, leading to frenzied shopper demand and viral sell-outs in its first year, alongside an expansion of its range with new flavour launches in leading UK retailers.
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However, the latest figures reflect a cooling of that initial hype, with consumer interest fading across 2024.
Last year, images began circulating on social media of major retailers such as Tesco, placing the products in clearance bins for as little as 31p with signs reading: “reduced to clear”.
Remember when people were paying about £100 a bottle ???????????? pic.twitter.com/nII97IbtaG
— Josh (@joshpearson180) March 27, 2024
In a statement accompanying the accounts, directors acknowledged the shift, stating: “The company is now entering a strategic review process to transition from an initial hyper growth phase to a more sustainable, long-term presence in the market.”
Looking ahead, the London-based subsidiary of the US brand said it would continue to invest in innovation, pointing to its new “Prime Ice” product line launched earlier this year. More launches are planned into 2025, although details are yet to be disclosed.
“As the company works on its transition to a phase of more sustainable, long-term presence in the market, it continues to launch new product lines and keeps innovating,” the brand added.
