Cost-of-living drives Spudshed profit surge

Cost-of-living pressures have driven a sharp uptick in both customer numbers and revenue for Tony Galati’s Spudshed, almost tripling its previous year’s profit.

The independent fruit and vegetable player saw an 11.8 per cent increase in total customers translate to a 16 per cent increase in sales year on year, which in turn saw final profit hit $14.1 million.

That was up from $5.4 million the year prior, and $1.6 million in FY22.

In its financial report lodged with ASIC yesterday, the company revealed total revenue had hit $600 million across its 17 stores, up from $517 million in FY23.

The report also detailed it paid $73 million to employees – up from $10 million on last year’s figure.

“The continued impact of cost-of-loving pressures has driven consumers to increasingly seek value in their food purchases,” the report said.

“This shift has led to a notable increase in customer numbers, which have risen by 11.8 per cent.

“This shows that we have successfully attracted a broader customers base by aligning our offerings with the market’s demand for affordability.”

The report said the company’s ongoing focus on improving operational efficiencies and managing stock losses had paid off, yielding a profit before tax of 3.6 per cent.

“This figure is below the industry average and reflects our commitment to value as we continue to grow customer loyalty and expand our customer base,” it said.

A fully franked final dividend of $6 million, up from $4 million the prior year, was paid to the owners.