This has taken a big step towards profitability as it scored a positive gross margin for the first time in the meat alternative brand’s history.
Under new boss Mark Cuddigan, who took charge in February last year, the business has slashed the total number of SKUs produced from 100 to 44 as part of its strategy to become profitable.
A focus on supply chain efficiency helped reduce cost of sales by more than 14% in the year ended 31 December 2024, leaving This with a gross profit of £2.2m and translating to a margin of 12%. It compared with gross losses of £1.4m and a negative margin of –8% in 2023.
Tight cost controls also contributed to administrative expenses falling by £1.6m, thanks in part to a drop in wages as the business reduced average headcount from 65 to 56 in the year.
Despite the improvements, the company still posted pre-tax losses of £6.4m – a significant reduction on £11.9m in 2023. It means This has registered cumulative losses of almost £35m since Andy Shovel and Pete Sharman founded the company in 2019.
Cuddigan told The Grocer the business hoped to move into the black in the next year.
Growth also slowed considerably in 2024 as revenues increased just 5.6% to £18.3m, down from a 47% rise in the prior year, with This having been named in the Alantra Fast 50 in 2023 as the fastest-growing brand in UK food and drink.
“In 2024, we achieved our first positive gross profit of £2.2m, representing a more than 2,000 basis point margin improvement, which has been achieved through a focus on supply chain efficiency and portfolio rationalisation,” Cuddigan said. “In line with our new strategy, we reduced the total number of SKUs in our business from 100 to 44.
“On the bottom line, operating losses have nearly halved (46% reduction) through a combined focus on cost control and operational efficiencies.
“Looking forward, we will continue to bring exciting innovation to our award-winning plant-based meat alternatives range. We will also be continuing to focus on margin improvement and cost control, as we target profitability within the next 12 to 18 months.”
Last month, This launched a ‘Super Superfood’ range made with 100% natural ingredients as it attempted to escape the UPF debate harming the wider meat alternatives category. It also marked the brand’s first departure from fake meat products.
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