Online healthy snacks retailer, graze, reports strong UK performance and successful launch in the US

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Online retailer of healthier, portion controlled snacks, graze, has reported a strong UK performance and successful launch in the US for the year ended 28 February 2014.

Financial highlights

£m Year ended

28 February 2014

 

Sales 52.7
Underlying year-on-year sales growth 31%
EBITDA 12.2
Net cash inflow from operating activities 10.2

With the exception of underlying year-on-year sales growth of 31%, graze said it has not been possible to present prior year financials as they are for a part year only, following changes made to the group structure in 2012, and as such do not provide meaningful comparatives.

Operational highlights

  • Strong growth in the core UK business, assisted by increased penetration of the family market, using technology to improve segmentation and personalisation of the customer experience
  • Successful launch of the graze goodybox for children and graze breakfast boxes, expanding the size of the UK market opportunity for graze
  • Official nationwide launch across the US in November 2013 – exceeding 100,000 customers by February 2014. graze’s direct to consumer model, data analytics and experience from the UK were key to the early success of the US launch
  • Development of a mobile responsive website to improve customer experience on mobile
  • Continued investments in manufacturing capacity and supply chain technology to support growth

Post year end

  • Opening of graze’s New York office in June 2014 with commitment to invest US$75m over the next two years in US business infrastructure, technology and marketing
  • Launch of graze big box sharing snacks scheduled for autumn 2014

Anthony Fletcher, CEO of graze, said: “I am delighted with the progress made across the group’s operations, which is reflected in another year of record financial results, with sales exceeding £50m for the first time. The core UK business continues to go from strength-to-strength and has been further boosted by the launch of new product ranges. Our launch in the US went smoothly and early trading has surpassed our expectations as graze fast establishes itself as the leading online retailer of healthier snacks.

“The current financial year has started well and we continue to build out our US operations to realise the market opportunity. With our leading technology platform, deep customer insights and continuous product innovation we are well placed to make further profitable progress in the current financial year.”