Planet Organic has made “meaningful progress” in its recovery plan, after a year of cost-cutting coupled with improved sales at its stores.
In what are the first full-year results to be published since founder Renée Elliott returned to save the business from administration over two years ago, revenues surged to £30.1m, up from £8.3m in the period to 31 August 2024.
Despite the progress, the accounts show pre-tax losses grew from £920.7k to more than £1.2m, following a £2.6m increase in admin expenses. However, the business claims that losses “actually slowed significantly” year on year, as the last set of accounts only covered the final four months of the financial year after Elliott’s return.
“If you were to compare the 12-month results in August 2024, to the four months in August 2023 then the loss run rate reduced by two thirds,” Planet Organic said.
The variation in recorded account periods makes direct comparisons difficult, but EBITDA also remained in the red. However, the fall slowed from a loss of £1.3m in the fourth period alone last year, to £855.789 across the latest full year.
Nevertheless, it showed “marked improvement” in Planet’s performance after a “transitionary turnaround period” during which Elliott, and new managing director Mark Broomfield, focused on stabilising its cost base by reducing its property costs.
After transferring leases from administrators to Elliott’s new company, Bioren Limited, Planet closed its stores in Balham and Spitalfields after failing to agree new cheaper leaseholds with owners. It also relocated its store in Westbourne Grove and reduced the size of its shop in Muswell Hill.
Planet Organic’s sales are growing
Planet also completed a review of its entire range, launched by Elliott in September 2023 in a bid to take it back to its organic, and “wellness” roots, removing hundreds of products, Planet also relaunched its brand under the new tagline of ‘Your world. Our Planet’.
At the same time, work to improve availability has improved sales at all stores and was continuing to strip out unnecessary costs.
In an interview with The Grocer in March 2025, Elliott described the period as the “hardest I’ve ever worked and the most fun I’ve ever had”.
The progress has continued into the first half of 2025, with like-for-like sales increasing 10% across its remaining eight stores, all of which are in London.
“Over the next 12 months or so we will address improvements to our store estate alongside a rollout of the brand refresh,” said Broomfield in the results.
“We are also investing in improved training for our colleagues. The directors are confident that the turnaround of the business is on track and are optimistic with regards to the potential growth opportunities ahead.”
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