Modern Milkman has halved its operating losses for the second year in a row, according to latest accounts published on Companies House.
The DTC business cut its operating loss by 42% to £6m in the year to 29 December 2024, compared to a loss of £10.5m in 2023.
The accounts reported this was part of a continuation of the group’s profitability improvement plan and that it reflected the group’s focus on capital-efficient operations over high-cost growth.
EBITDA losses also improved by 60%, reducing to £2.9m compared to £7.3m in 2023.
At the same time, turnover increased by 13% from £46.2m to £52m this year thanks to expansion into the US. It grew the US market’s annualised run-rate revenue from approximately $4m in the period immediately before the acquisition to $12m by the end of 2024.
However, the group strategically reset in the UK, which led to a “slight, planned contraction in UK revenue” but was “transformative for margin generation”.
“Our 2024 results reflect the strength of our approach to growth in a tough consumer environment, improving gross margin and reducing losses following the successful acquisition and integration of our US arm,” said Simon Mellin, CEO of Modern Milkman.
“At the same time, we’re evolving the service to do more for households and return more value to our members,” the spokesperson added. “Regular doorstep visits, reliable collections, and community trials continue to show how much time, effort, and decision-fatigue we can remove from everyday life.”
He added that the focus on busy households would build a “membership-led platform that strengthens local communities and positions Modern Milkman for sustainable growth.
In its accounts, the business wrote that it was facing pricing and margin pressures from competitors including bricks & mortar retailers, restaurant platforms diversifying into grocery, and legacy milk delivery businesses. Supply chain cost fluctuations and labour shortages were also applying pressure, the business said.
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