Employees of Riverford will share in a payout of £1.3m after the organic vegetable box company more than doubled profits last year.
More than 1,000 staff at the Devon-based group, which began making deliveries from an old Citroën in 1993, will receive about £1,000 each as the employee-owned company nearly tripled its annual payout to workers.
Riverford made pre-tax profits of £5.3m in the year to 4 May 2024, up from £2.4m a year earlier as sales rose by a better-than-expected 11% to £110m, according to accounts filed at Companies House.
Riverford, which counts Abel & Cole and Oddbox among its competitors, had experienced a surge in orders during the pandemic-fuelled boom in online shopping, making as many as 200,000 deliveries a week during high street lockdowns in 2020 and 2021. Sales fell back in the aftermath of the pandemic, but have since recovered.
The number of boxes delivered rose to 70,000 during the 2023 Christmas period, up from a steady 65,000 during the rest of the year, with loyal shoppers adding more organic meat as well as fresh fruit and vegetables.
Sales were also boosted by a 5.6% rise in prices in mid 2023, when the whole UK grocery industry faced cost inflation partly driven by the war in Ukraine, which pushed up energy and fertiliser costs, while labour costs also rose.
“Financially the year was one of the best we have ever seen with record revenue and profit outside of the two Covid impacted years,” the company said.
Lucinda Turner, the commercial director at Riverford, said: “More and more people are choosing better – better food, better farming, and better business. Our sales grew to £110m because more people are choosing quality, organic food, seasonal eating, and fairness to farmers. Our loyal customers also spent more with us last year, and we saw our biggest Christmas ever.”
She said the rise in profits reflected a “period of stabilisation” as the group worked to return to its pre-Covid trading position despite rising competition on organic produce from supermarkets and smaller box operators.
Turner added: “Like everyone in food and farming, we faced rising costs last year, including a 10% increase in the real living wage, which added £2.7m to our costs, alongside rising raw material prices. While we had to adjust some prices, we worked hard to shield key staples to keep organic food as accessible as possible.”
Riverford started growing vegetables for supermarkets in 1986, and its founder, Guy Singh-Watson, began making home deliveries to about 30 friends seven years later. He sold nearly three-quarters of the company to employees in 2018, and sold his final 20% stake last year for £8.5m.
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The group’s 1,023 staff – up from just over 900 in 2023 – each receive an annual profit share, are paid at least the independently verified living wage and participate in the running of the business. Last year, employees shared in a payout of about £500,000.
Riverford is adding 200kw of solar power this year at various sites to more than 800 kilowatts already in place, including at its main Wash Farm centre. Riverford is also increasing the number of electric delivery vans.
The group planted 10,000 trees during the year with plans to plant several acres of wood pasture that can be integrated with livestock grazing across Wash Farm and two neighbouring farms.
