Profits tumble £700,000 at organic veg box firm

Profits at a North Yorkshire organic veg box company dropped by more than £700,000 in the last 12 months, which the firm says was caused by last year’s ‘Beast from the East.’

Riverford said that its pre-tax profits slipped from £783,758 to £55,395 for the year due to adverse weather and the impact of snow in February 2018, as well as operational costs from a new packing system being installed.

However, revenue rose by 7.4% to £60,9m, up from £56.7m the previous year, for the 52 weeks to 30 April 2018, which was mainly due to a rise in average order value.

Riverford produces and delivers its veg boxes to more than 50,000 homes throughout the country each week. Its network of growers and suppliers in the UK include Home Farm at Newby Wiske and other North Yorkshire producers.

Looking ahead for the next financial year, managing director Rob Haward said there is a positive outlook with sales already up 10% year on year, despite the concerns over a no-deal Brexit.

Haward said: “The year ahead is looking very positive, despite the challenges around Brexit. We are already 10 per cent up on sales, a position we haven’t been in for over a decade. We are seeing the benefit from a general shift towards plant-based diets, and shoppers looking for more ethical buying options.

“Last year’s installation of a new ‘pack-by-light’ packing system was our largest operational investment for 25 years and it took some time to consolidate. Now that is bedded in, we anticipate further efficiencies.”

Riverford became employee owned in May 2018, a move Haward said has given the company a “huge forward momentum” and increased engagement with customers, media and employees, now co-owners.

Haward added: “The prospect of the UK leaving the EU on 29th March with no deal is causing public uncertainty and concern about food supplies.

“We are planning for two weeks of disruption should there be a no deal. Any longer than that and we will face significant difficulties, along with many other companies. We do not expect disruption to run for longer than two weeks but have made plans to cope with this eventuality.”