Riverford profits dip as it shoulders rising costs for customers

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Riverford Veg box - Ed

Source: Riverford Organic

Riverford said organic demand had grown but its profit had not as it had chosen to shoulder rising costs rather than pass them all onto customers

Riverford has seen sales increase to a record £117m in its first full year as a 100% employee-owned business.

It said organic demand had grown but its profit had not as it had chosen to shoulder rising costs rather than pass them all onto customers.

In the year to May 2025, turnover rose by 6% from £110m to £117m, while operating profit fell from £4.7m to £3.4m.

Riverford said this was due to the business paying the real living wage, keeping organic vegetables as accessible as possible by protecting key staples, and sharing £1.1m of profits equally among around 1,000 employees, known as co-owners.

“This was a year where we chose to shoulder as much of the rising cost pressure as we could while remaining profitable,” said CEO Rob Haward. “We tried to protect customers from the worst of this, while staying true to our values, paying people fairly and farming in the right way.”

Haward said the latest results had reflected a tougher backdrop than the prior year, when profits rose and resulted in £1.3m shared with employees.

“Last year showed what our model can deliver in favourable conditions,” he added. “This year shows what employee ownership looks like when times are harder, that fairness remains even when margins are under pressure and we stay uncompromising on our values and doing the right thing.”

With costs still rising across the food sector, Riverford has said it will continue to keep its pricing under review to protect free delivery and its commitment to paying the real living wage.

Haward added that more recent trading after the results period was encouraging, including its strongest Christmas to date in December 2025.

Riverford’s growth in the period was driven primarily by existing customers shopping more frequently. There was also a boost in organic meat sales, which now account for 10% of sales for the business.

The company continued its investment in environmental and social initiatives during the year, including the progression of its biodiversity action plans and decarbonising operations, with 70% of Riverford vans now electric.

The business is also investing in agroforestry projects and research and development in peat-free growing media on salad crops, which the business is now seeking funding for to help scale this across commercial horticulture.

“As we move into 2026, trading conditions remain challenging,” Haward added. “But we continue to see that customers care deeply about where their food comes from, how it’s produced and who benefits.

“Our values of trust and fairness are what underpin our resilience as a business, and we’re determined to keep doing things the right way, with good food, good farming and good business.”