Ready meal firm Parsley Box looks ahead to more appetising sales performance in H2

Edinburgh-based ready meal firm Parsley Box Group says it remains confident of returning to revenue growth in the second half, but has revised its full-year sales guidance amid a “challenging” consumer environment.
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The Aim-quoted business, which is chaired by Scottish tech veteran Chris van der Kuyl, said in a trading update that for the five months ending May 31, the adjusted core loss (before interest, taxes, depreciation and amortisation) is about 10 per cent ahead of management expectations, with losses having reduced by roughly 44 per cent from the prior year.

It expects its full-year core loss to be approximately £4 million – “slightly below” its forecast, but 44 per cent ahead of last year. The direct-to-consumer firm sells ready meals plus an expanding range of other products, targeting what it sees as an underserved market of those aged over 65.

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It added that as a result of lower order volumes, sales for the year so far are around 11 per cent below management expectations, and given the unsteady macroeconomic environment, it is taking a “prudent” view for the remainder of the year and it now expects revenue for 2022 to be about £22.5m. In April it said it had “stabilised and improved the business significantly” after overcoming crippling supply chain issues, after it in March completed a £6.1m fundraising.

The firm noted that forthcoming product releases include further expansion into meals for two, while its first gift hampers – for the Queen’s Jubilee – have sold out, and it is looking to add non-food products to its range as well as boost brand awareness.

Chief executive Kevin Dorren said Parsley Box continues to navigate a “challenging consumer environment suffering from a well-documented reduction in consumer confidence”. However, he added: "We remain well funded and confident that our product innovation, recommenced targeted marketing strategies and strong cash position will enable us to retain and grow our customer base in our over 65 target market, and return the group to sales growth in the second half of the year.”

Nigel Parson, consumer analyst at FinnCap, saw cause for optimism regarding Parsley Box’s prospects due to the “raft” of initiatives in the system. However, he added: “We also trim our target price to 33p (was 36p) to reflect the downgrades to forecasts.”

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