Riverford Employees Receive £1.3M Payout as Profits Soar

The Digital Artisan -

Riverford Employees to Share £1.3M Profit Payout

Organic vegetable box company Riverford has announced a £1.3 million payout to its employees after the company more than doubled its pre-tax profits to £5.3 million for the financial year ending May 4, 2024. The Devon-based firm, known for its employee-ownership model, will distribute around £1,000 to each of its 1,023 staff members, a significant increase from the previous year’s £500,000.

Riverford saw an 11% rise in sales, reaching £110 million. The company attributes its growth to increasing consumer preference for organic and ethically sourced food. The rise in demand was particularly noticeable during the 2023 Christmas season, where deliveries peaked at 70,000 boxes compared to the usual 65,000 throughout the year.

Challenges and Strategic Adjustments

Despite facing rising costs, including a 10% increase in the real living wage that added £2.7 million to operational expenses, Riverford managed to maintain profitability. Inflation and supply chain disruptions, partly influenced by geopolitical events such as the Ukraine war, pushed up costs of raw materials and energy. In response, the company raised prices by 5.6% mid-2023 while striving to keep organic staples affordable for customers.

Sustainability Efforts and Future Plans

Committed to sustainability, Riverford is investing in renewable energy and eco-friendly logistics. The company is adding 200KW of solar power this year, expanding on its existing 800KW capacity. Additionally, Riverford is increasing its fleet of electric delivery vans and planting 10,000 trees as part of its green initiatives.

Employee Ownership and Business Philosophy

Riverford’s founder, Guy Singh-Watson, transitioned the firm into employee ownership in 2018, and completed the sale of his remaining 20% stake in 2024 for £8.5 million. This ownership model fosters workplace participation, profit-sharing, and fair wages among employees. The company remains focused on delivering high-quality organic food while maintaining ethical business practices.