Bloom and Wild: Losses balloon to over £100m at flower seller as cost of living crisis bites
Losses at the group behind Bloom and Wild ballooned to more than £100m during its latest financial year after being hit by the cost of living crisis.
The London-based group, which which sends bouquets of flowers in boxes that can fit through a letter box, has reported pre-tax losses of £100.5m for the year to March 31, 2023, compared to losses of £20.4m in the prior 12 months.
Bloom and Wild, which also includes the Bloomon and Bergamotte brands, has also posted a revenue of £117.9m down from £145.4m, according to newly-filed accounts with Companies House.
The latest results come after accounts published in January revealed that the Bloom and Wild brand itself had achieved a turnover of £83.2m, down from £107.2m, while it went from making a pre-tax profit of £320,969 to losses of £1.4m.
Bloom and Wild said that its revenue decreased partially because of the “economic climate and Bloom’s greater exposure to the more macro-economically impacted subscriptions business but also the strategic decision to reduce investment in new customer acquisition marketing”.
During the year, the average number of people employed by the group rose from 375 to 440.
Bloom and Wild pivots from ‘growth to profitability’
A statement signed off by the board said: “The backdrop to the year was defined by the significant change in the macro-economic environment.
“Inflation rose rapidly, resulting in falling consumer confidence and a squeeze on real disposable incomes, precipitating the cost of living crisis across Europe.
“At the same time the Covid-induced trading spike for e-commerce operators, which was still partially in evidence in [the] prior year comparatives, was unwinding as consumers returned to physical stores.
“In response to the economic backdrop and its impact on funding markets, Bloom and Wild took the decision early on in the financial year to pivot the strategy from growth to profitability.
“Operating costs were cut and marketing investment was reduced, with the financial benefits starting to come through in the second half of the year, whilst maintaining outstanding customer satisfaction scores.
“A natural consequence of this strategic refocus was the paring back of new growth initiatives with a greater focus on retention of existing customers than on new customer acquisition.
“Despite this refocus and the more challenging macro-economic conditions, revenue in FY23 was 2.5 times the level achieved in FY20, before the Covid-19 pandemic started.”
Bloom and Wild was established by Aron Gelbard and Ben Stanway in 2013.