Meal-replacement company expands reach as it launches sustainable and ethical clothing line 
Julian Hearn, co-founder and CMO at Huel says the brand has some of the most passionate customers he’s ever seen

According to documents filed to Companies House, Huel recorded £102.7 million in revenue on a pro-forma basis for the 12 months to July 2021, compared to £71.9 million in the 18 months to July 2020. 

The meal-replacement start-up’s gross profit margin increased 1% in 2021, and EBITDA before share-based payments came in at £2 million. In the prior 18 months, the company recorded an EBITDA of £1.3 million on a pro-forma basis. 

Growth during 2021 was driven by both new and existing customers across a number of product categories including the latest addition of on-the-go protein drinks. 

Active customers increased by 30% in 2021 to 748,000, while average order value per customer also increased by £10 to £66 on the previous 18-months.

Sales outside the UK accounted for 53% of total sales for the year ended 31 July 2021. 

The group’s operating loss during the 2021 financial year was £800,000, while its total equity at the end of the 12-month period was £19.7 million.

In it’s financial report, the company said it had been relatively protected from the impact of Covid-19, although it recorded reduced growth rates in the first half of the 2021 financial year due to the initial lockdowns. 

However, in the second half of the financial year, the company experienced an accelerated growth rate thanks to a renewed focus on health and wellness among consumers. 

A new product category

For the upcoming 2022 financial year, Huel expects to grow its revenue at a “strong double-digit rate, while continuing to target sustainable EBITDA in the medium term”. 

In April the company moved into a completely new market segment, launching a sustainable clothing line for both men and women. 

Speaking to The Guardian, Huel co-founder and CMO Julian Hearn said the company’s customer base had been asking for additional clothing, beyond the free t-shirt supplied with each online order. 

“We have some of the most engaged and passionate customers I’ve ever seen at any brand I’ve worked for,” Hearn told the newspaper. 

Huel’s hook for its latest offering is a promise of extremely high quality clothing and its dedication to sustainability and ethical working practices. 

Date published: 28 April 2022

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