Gousto has returned to “market-beating” growth in the first half of 2025 as the recipe kit business continued to build on positive trading momentum experienced in the back end of last year.
Revenues increased 11% to £180m in the six months to June, keeping Gousto on track to hit its growth target for 2025 of 5% to 10%, despite wider economic uncertainty, according to an update issued this morning.
During the half, Gousto also refinanced its debt facilities with new providers HSBC and Rabobank at “more favourable” terms.
It follows Gousto registering record underlying profitability in 2024 and shifting focus back on growing the top line.
Gousto is aiming to take on the supermarkets and steal share in the mainstream dinner market, with a major advertising campaign launched in August to advance the new brand positioning.
“We have returned to a growth focus, achieving a market-beating 11% sales increase in the first half, despite an unrelenting economic environment,” said founder and CEO Timo Boldt.
“Thanks to our technology and model we have been able to limit our price increases through the cost of living crisis to 41% below the rate of grocery inflation. We will continue to build upon our next-day delivery trials and double down on our ‘convenience without compromise’ proposition as we look to take on the supermarkets for the dinner market.”
Gousto added its tech-driven model meant the menu algorithm was able to “optimise for value”, alongside other factors such as health, convenience and range diversity, when selecting 500 recipes per month from its bank of more than 9,000 options.
The algorithm could pick out recipes where the total ingredient cost remained stable, and, in other recipes, swap out expensive ingredients where prices have shot up for substitutes.
Gousto said this had enabled the business to limit price rises to an average 4.8% per year.
“In times of rising food prices, I believe passionately that everyone should have access to meals that are both healthy and affordable. We want to make it easy for people to eat well by offering convenient, healthy meals for those on a budget,” added Boldt.
Meanwhile, a next-day delivery trial that kicked off earlier this year signalled “a major milestone” in Gousto’s strategy to challenge the supermarkets.
Currently the service is offered to new customers, those returning to Gousto and existing customers ordering in addition to their subscription. Results showed a strong uptick in signups and retention, Gousto said.
The service will continue to build in scale over the coming months.
“From day one we removed the pain of meal planning and the dreaded weekly supermarket shop through our online ordering and delivery-to-your-door offering. We are winning now because we are making it easier and more enjoyable than ever for time-pressed households to eat well,” said Boldt.
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