Losses at Smol have ramped up as the eco-friendly household brand invested in expansion at home and abroad.
Rapid growth at the DTC business also slowed dramatically in the year to June 2025, with revenues up just 2.6% year on year to £44.7m. The top line has close to doubled in the past four years, with a rise of 37% registered in FY24.
Margins nudged 1% higher during the year thanks to operational efficiencies, but distribution costs and administration expenses increased, with the company taking on more employees to push its workforce to more than 120-strong, latest accounts at Companies House showed.
Smol, which was founded by former Unilever directors Paula Quazi and Nick Green in 2018, continued to invest in direct marketing to win customers for its subscription service. It also put money from a $34m Series B in 2021 behind its infrastructure as it opened a new production facility.
Pre-tax losses almost doubled to £1.5m as a result after being slashed from more than £5m in FY23 to £850k in FY24.
“Following a period of strong growth, FY25 was a year of investing for scaling Smol,” CEO Nick Green told The Grocer.
“While revenue was relatively flat year on year, investments in strengthening the business for the long term, including our European expansion and the move to our new UK production site, were reflected in an increase in reported losses for the period.
“Over the past 12 months, we’ve made strong progress in improving customer quality, building infrastructure, and creating greater operational efficiency in ways that are kinder to the planet. These include initiatives such as grouped delivery, the launch of 100% recycled, refillable aluminium bottles and the switch to 100% renewable energy for our new site. These are important foundations for the next phase of planned growth.
“Our strategy remains the same: to build a category-defining, purpose-led business with strong fundamentals, and we remain confident in both our mission and our path forward. With the work done this year, we believe Smol is well positioned to accelerate revenue growth and move steadily towards profitability.”
Smol delivers a range of sustainable laundry capsules, fabric conditioner, dishwasher tablets, washing-up liquid, surface sprays, floor cleaner and handwash direct to customers’ doors.
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