Parsley Box Group expects loss as it invests in new products to help with cost of living crisis
Meal delivery service Parsley Box Group had a dip in revenue and order numbers, as it invested in new products to attract customers amid the cost of living crisis.
The company had a drop in income from the previous year, down to £9.6m from 14m, while its new customer revenue was under £1m, from £3m in 2021.
Parsley Box, which directly delivers meals and other food and drink products, with a focus on over-65s, launched a summer catalogue this month and invested in marketing to get new customers, including a new TV ad campaign in September.
It said marketing acquisition acitivites will be reduced if the high costs continue, from the fourth quarter.
Amid the cost of living crisis, it has also started looking into new products to help people suffering with the cost of living crisis, whereby meals can be stored without the need for refrigeration.
Parsley Box’s order numbers in the first half of the year were way down on 2021, at 212,000, compared to 385,000 last year, which it expects will lead to a full year revenue of under 20m.
However, its earnings are expected to be in line with expectations at a loss of £4m, due to high investment in marketing.
“We have continued our product innovation at pace.. whilst we navigate the challenging consumer environment”, said Kevin Dorren, chief executive of Parsley Box. “We recently brought down the price of a range of customer favourite meals to £2.95 to help alleviate the rising cost of living, and have frozen all prices until September. We remain well funded and continue to deliver quality, good value, and nutritious food.”