The º£½ÇÊÓƵ division of HelloFresh has plunged further into losses as revenues declined during its most recent financial year, newly filed accounts have disclosed.
The business has recorded a pre-tax loss of £19.5m for 2024, according to documents submitted to Companies House, as reported by .
This marks a deterioration from the £755,000 loss reported in 2023.
HelloFresh º£½ÇÊÓƵ last achieved profitability in 2020, when it posted pre-tax earnings of £8m, but has since accumulated losses approaching £70m.
The latest figures reveal that º£½ÇÊÓƵ turnover dropped from £489.9m to £464.4m over the period.
Despite the financial challenges, HelloFresh expanded its º£½ÇÊÓƵ workforce from 1,842 to 1,952 employees during the year.
This increase follows the previous year's decision to cut 15 per cent of its staff.
HelloFresh closes major º£½ÇÊÓƵ location
In a board-approved statement, the company explained: "In 2024, HelloFresh º£½ÇÊÓƵ operated against a challenging market backdrop, marked by continued cost-of-living pressures in the º£½ÇÊÓƵ, elevated interest rates, and persistent volatility in consumer demand.
"While turnover decreased by five per cent, we maintained a resilient gross margin of 27 per cent through discipled pricing and procurement initiatives while opening a new next-gen automation production facility in Derby."
HelloFresh attributed its operating loss of £14.8m "primarily driven by non-recurring costs associated with an upcoming closure of a warehouse as part of the company's strategy to streamline and consolidate fulfilment operations". In October 2024, Hellofresh revealed plans to shut down its distribution centre in Nuneaton, a move that threatened nearly 9000 jobs.
The recipe box delivery firm stated at the time that the Nuneaton distribution centre would continue operations until mid-2025.
The 237,000 sqft facility was the second site for Hellofresh when it launched in 2020.
In a statement released at the time, Hellofresh said: "After reviewing all of our options, we have decided that consolidating our operations and leveraging more of the technologically advanced parts of our network will enable us to offer the best product to our customers while reducing emissions and waste."
