The UK-based specialty coffee group achieved 38% year-on-year sales growth in the 12 months ended 30 April 2024 and has raised £10m to further scale its café, online and B2B segments
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Grind’s Royal Exchange outlet in London | Photo credit: Rebecca Hope/Grind
Specialty coffee group Grind has posted record annual sales and disclosed a £10m ($12.3m) fundraise to invest in further growth across its coffee shop, e-commerce and wholesale channels.
London-based Grind achieved 38% year-on-year sales growth during the 12 months ended 30 April 2024 to reach £29.7m ($36.7m). The group’s high street coffee shops and e-commerce channels each contributed 40% of revenues, with wholesale generating the remaining 20%.
Grind, which currently operates 11 outlets and three coffee carts across London, said high street sales grew 13% year-on-year with the segment now trading above pre-pandemic levels.
“The business is back to trading above pre-pandemic levels despite the increased levels of work from home, and we are confident that this can continue to grow as people slowly come back into the city more often,” Founder David Abrahamovitch stated in Grind’s Companies House filing.
Additionally, Grind’s online business now consistently delivers monthly sales above £1m ($1.2m) while its packaged coffee products are now stocked by 8,000 UK retailers, including large supermarket chains Tesco and Waitrose.
However, investments in growth and marketing have widened Grind’s annual losses, with EBITDA increasing 1.1% year-on-year to £3.9m ($4.8m) and total pre-tax losses growing 6.5% to £5.6m ($7m).
Having completed a £15m ($17.1m) investment round in March 2023, Grind raised a further £5.5m ($6.8m) during the reporting period and has completed a further £10m ($12.3m) funding round since its fiscal year end.
“The business is well capitalised and in a strong position to grow in the coming year,” Abrahamovitch added.
Grind operates coffee shops in some of London’s most high footfall districts, including Shoreditch, London Bridge, Covent Garden and St Pancras Station. The specialty coffee group closed its Whitechapel coffee bar during the period and also shuttered its Melrose Avenue site in Los Angeles after its one-year contract with Soho House ended.