Interflora’s losses widen as flower delivery giant attempts ‘boldest pivot in 100-year history’
Losses widened at the UK arm of flower delivery firm Interflora widened its pre-tax losses last year, as the firm continued to struggle with customers spending less.
The Lincolnshire-headquartered company lost more than £2.3m in 2023, an increase of more than 20 per cent on the previous year.
The group’s turnover for the year was £86.8m, up from £85.4 in 2022, according to newly-filed accounts with Companies House.
However, this figure remains a long way off from its 2021 total, when turnover hit £102.4m and pre-tax profits were £12.7m.
A statement signed off by the board said: “The group’s vision is to be the UK and Ireland’s most loved flower people.
“Our mission is to be the champion of our local artisan florists and create beautiful moments for special people so they have a relationship with us that they truly love and want to share. We champion to keep our high streets alive.
“The continued cost of living has an impact on the company’s input costs, as well as in consumer confidence.
“The directors continue to monitor costs and revenues through routine financial management activity and take appropriate measures to ensure the company’s profitability and viability through sales pricing and cost control.
Over the year the company paid total dividends of £7.6m, which increased from £6.6m the previous year.
Interflora UK was bought by the world’s largest flower delivery network, US-headquartered Teleflora, in 2019, in a £47m deal designed to expand the American firm’s international reach.
Interflora’s ‘boldest pivot’ in 100 years
Interflora’s 2023 financial results come just months after the firm revealed its “boldest pivot” in its 100-year history in a bid to attract new younger customers.
It announced its new strategy to target the female under-45 audience after market research laid bare its “old fashioned” public image.
Speaking in Febuary, Lyn Davies, consumer director at Interflora British Unit, said: “We know that young females are driving the market but research told us this group had some misconceptions about our brand.
“Many saw us as corporate and old-fashioned – essentially not a brand for them. It was an uncomfortable truth but one we had to face up to.
“The current financial climate is tougher than ever, more competitors have entered the flower delivery market, and the high street faces challenges of its own.
“However, there was some positive news in all of this. When we looked at what the younger audience wanted from a gifting provider – a locally made product that could be personalised – we found our brand perfectly placed to help.”
“We believe our business model makes us uniquely positioned to answer consumers preferences, but we recognised the need to repackage what that looks like to appeal to a younger audience. This led to the development of a new brand platform for us.”