Gousto on track for record profits despite cost-of-living crisis

Reporting that it returned to profit in the first half of 2023, Gousto said it was on course to post full-year profits of £20m-plus and positive cash flow generation, having managed food inflation impact “through the use of automation and AI”.

Founder and chief executive Timo Boldt said: “Since launching Gousto in 2012 food price inflation averaged less than 1.5%, but within months of the Ukraine war we had to manage sustained double-digit growth in food costs, with many individual ingredients hitting record levels.

“Increasing automation across our production facilities and the use of AI technology to select weekly menus from our databank of over 6,000 recipes – optimising for value as well as customer satisfaction, taste and health – has enabled us to minimise the impact of double-digit food price inflation on our customers.”

It cut costs in the fourth quarter of 2022, pausing investment in two new production facilities, to “better align production capacity with near-term trading conditions”.

The brand also introduced delivery charges in 2022 and launched ‘save and savour’ recipes in the second half of 2022 for value focused customers.

Gousto will end 2023 with an extra £100m on its balance sheet, having agreed a £30m new debt facility with Signal Capital Partners and a combined £50m new equity raise and £20m of debt funding this year.

Boldt added: “We have returned the business to profitability in 2023 whilst also pushing forward on our purpose to build an amazing product with a positive impact on people and the planet. Gousto has protected customers from spiralling food inflation during the cost-of-living crisis and in doing so has increased our relative competitiveness against the traditional grocery market.

“The mega trends of convenience, health and sustainability will continue to shape the grocery industry and at Gousto we are increasingly confident that our leading proposition of the most choice, best value and better for the environment, with 23% less emissions than a traditional supermarket shop, will power our future growth.”