Parsley Box cuts marketing spend amid supply chain issues

Ready meals provider Parsley Box Group said on Thursday that it had reduced its planned marketing investments after supply chain issues hampered stock availability.

Parsley Box recorded an 18% year-on-year revenue growth in the eight months ended 31 August to £17.8m, while products shipped also grew 18% to 7.8m units.

However, Parsley Box said labour issues throughout its supply chain "significantly restricted" stock availability at roughly 50% of planned levels, leading the firm to make "the difficult decision" to reduce its investment in marketing, something likely to continue until supply chain constraints recede.

As a result, the AIM-listed group now expects full-year revenues to be around £25.0m, slightly ahead of 2020 levels, with "a consequential impact" on its pre-tax loss.

Chief executive Kevin Dorren said: "Delivering our product innovation plan remains the focus for the business as we navigate our way through the widely reported supply chain disruption.

"The second half of the year has been further impacted as we took the disappointing decision to pull back on planned marketing investment. However I, and the board, firmly believe that Parsley Box's long-term growth prospects are unchanged."

As of 0955 BST, Parsley Box shares had tumbled 29.01% to 70.0p.