Daylesford Organic was hit by mounting losses last year, which it has attributed to the ongoing cost of living crisis and inflationary pressures, but founder Baroness Bamford has pledged to continue investing in the business.
The famed farm shop chain recorded pre-tax losses of £3.6m in the year up to April 2024, up from £291,000 the year before, as stated in its Companies House filings.
In the past financial year the business’s wholesale sales fell by 7%, while retail sales grew by 10% and e-commerce sales rose by 5%.
The losses follow a boom period for the retailer, whose revenues rose by 27% in the year up to April 2021, but just 2% in the last financial year. It did turn a profit in 2021 – of £9,000.
Lady Bamford attributed the recent losses to a “tough trading environment” and having borne the cost of high inflation in food and labour, pledging to provide financial support for the business “if necessary.”
In its results, the company said:“The directors intend to continue to increase turnover and achieve profitability through growing the group’s retail, wholesale and online operations, making further investment in the Daylesford Farm site and implementing operational improvements.”
An advocate for organic farming and artisanal production, Lady Bamford opned the first farm shop and café in 2002, and since launched four stores in central London. The 3,500 acre farmland in the Cotswolds, also has a cookery school and a wellness spa which was built in 2004 and upgraded with the addition of a sustainable, luxury private members’ club in 2023. The shop was also extended in 2023, with the flagship farm shop doubled in size with a new garden and home section.
This article first appeared in the July 2024 edition of Fine Food Digest .
