Discount Dragon, the online retailer of surplus fmcg stock, has seen full-year revenue in 2024 climb 112% to £10.8m, despite group expansion causing constraints in warehouse capacity.
Discount Dragon also delivered a modest adjusted EBITDA profit for the first time, in the month of October 2024.
Discount Dragon was founded in 2022 and specialises in stock that is often close to its sell by date. It claims to offer some of the cheapest prices available online for well-known brands across categories including food cupboard, household cleaning and beer, wines & spirits.
Owner Huddled Group acquired Discount Dragon in October 2023, and added to its portfolio with the acquisition of Nutrircicle – selling protein and healthier snacks – in April last year and a controlling stake in Boop Beauty in July.
Group revenue grew by 485% to £14m in the full year, “exceeding our expectations across all of our core brands”, according to the trading update.
Over 285,000 orders were placed with Discount Dragon, up 70% on 2023, while average order value increased by 33% to about £40.
However, the growth put pressure on warehousing, with the group’s depot in Leigh fulfilling over 110,000 orders in quarter four, up 27% compared with a year earlier and approaching capacity.
In November, pending a redesign and expansion of the warehouse, the business took the decision to dispose of legacy stock by offering free gifts and reduced prices in a campaign to attract new customers.
While the measure impacted profitability in the final two months of the year, the total number of new customers across the three core brands grew 61% compared with the previous year, to 38,500.
“As we move into 2025, we will start to see the benefits of the additional warehouse space and efficiencies,” said Huddled CEO Martin Higginson.
“In addition, the growth in orders and revenue will bring further savings from packaging, carriers and payment processing, helping to drive better margins across the group.
“Turning surplus stock into savings for our customers is constantly at the forefront of our minds. As we continue to grow and get our message out there, we are able to deal with more manufacturers and retailers directly, helping them solve a surplus issue, as well as driving more value for our growing customer base.”
No comments yet