Turnaround plans at South Asian specialist Vibrant Foods have showed signs of life, as the company posted growth and positive cashflow in 2024.
Revenue growth accelerated from 2% achieved in 2023 to 5.6% last year, with sales reaching £191.7m.
PE firm Exponent created the Vibrant platform in 2019 as it brought together five South Asian food brands: TRS, East End, Fudco, Cofresh and Everest Dairies. Vibrant has struggled following a downturn in its performance in 2022 and kicked off a turnaround drive in 2023.
Vibrant has subsequently divested large parts of the business to focus on core units with better growth potential
“As demand continues to grow, we’re making strong headway in our consolidation strategy and I am confident in the momentum into 2026,” said CFO Kumar Govindasamy in Companies House accounts for the 12 months to 31 December 2024.
Opening a new distribution centre in May 2024, Vibrant built revenues through volumes and pricing, while continuing to narrow its cost base and focusing on cashflow. Vibrant also cut more than 70 employees from its payroll in 2024.
The company generated £5.5m cash from operations compared with an operational outflow of £14.3m in 2023, when it was forced to raise £32m in debt and equity to stabilise the business after two years of cuts.
The cost of Vibrant’s turnaround programme has led to a growing mountain of debt. By the year end, Vibrant owed £460.6m, spending an £52.9m in interest and similar expenses.
The company’s interest bill, combined with a £6.8m operating loss – deeper than 2023’s £5.2m loss – pushed Vibrant to a pre-tax loss of £59m, compared with £48.6m in the prior year. It took total losses at the platform to more than £360m.
Govindasamy said he was was confident despite the challenges ahead of Vibrant, thanks to the company’s “category-leading brands with rich heritage and deep consumer loyalty”.
“Vibrant operates in a category that’s growing, supported by a wide range of consumers who appreciate the quality of our products as they aim to deliver great-tasting food for themselves and their families,” he said.
“I am excited by what we are building to harness the significant opportunities ahead.”
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