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Highlights
- Huel is considering going public after reporting sales of over £100 million last year.
- After being valued at £220 million in its fundraising round in 2018, Huel had claimed in 2019 that it is anticipating being valued at around £760 million by this year.
After showing strong growth in the UK as well as other global markets, plant-based meals brand Huel is considering going public. The company reported sales of over £100 million last year. However, launching an IPO is just one of the many alternatives available to the firm, and it is currently exploring its options.
All about Huel and its IPO plans
Established in June 2015, Huel (Human + Fuel) was started with an aim to provide nutritious food to its customers at affordable prices in a sustainable manner. Since the establishment of the company, it has delivered over 200 million meals to its customers across the globe. The goal of the company is to make the food industry more sustainable by reducing the overall carbon footprint and wastage of food while dealing with the global undernourishment concerns affecting billions. The meal replacement powder offered by the company is said to help in weight loss. Huel has also started offering plant-based food products like grain bowls and energy bars.
As per the CEO of the company James McMaster, with a yearly growth of around 40%, Huel is among the fastest-growing consumer businesses. McMaster said that IPO might not be the only option available for the company, and it is exploring more alternatives. After being valued at £220 million in its fundraising round in 2018, Huel had claimed in 2019 that it is anticipating a valuation of around £760 million by this year. The company is continuously expanding its product pipeline, as per reports.
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Performance update
In the year to 31 July 2021, the total revenues generated by the company surged by 43%, hitting £103 million. The surge has been credited to the growing demand for its sustainable food products across the UK as well as internationally.
Over the year, there was a 45% rise in the revenues generated by Huel in the UK. This robust growth was mainly due to the strong distribution network of the company allowing it to deliver its products to the customers the very next day, along with a focus on brand awareness via key supermarkets. Product innovation also played a major role in increasing its revenues, a major example being the introduction of its ‘Hot & Savoury’ meal which recorded sales of 10 million since its launch.
The business of Huel has also shown tremendous progress in the US, recording a growth of 42% over the year due to a strengthened customer base. In EU countries and Japan, the company has displayed solid growth of 43% over the year. Even with the pandemic-related restrictions, Huel’s active customer base has surged by 30%.
New customers have been flooding in since the restrictions got lifted and the company has been actively investing in digital marketing to further increase its brand awareness and reach as many people as possible internationally. While channelising significant funds towards product innovation and overall expansion of the business, Huel’s underlying EBITDA went up by £0.7 million to £2 million during the year.
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Bottomline
Huel has been focusing on providing healthy and affordable food to all while reducing its environmental impact. The company is reportedly exploring the option to launch an IPO, but no specifics are available as of now. Further information is expected soon and can be referred from the company’s website.
