Harrogate well-being brand scents growth as online sales soar

Unveiling a stellar set of full-year results for 2020, NEOM said sales increased over the year by 84 per cent to £28.9m – up from £15.7m in 2019.

It said the trend was driven by successful product innovation and a 150 per cent increase in website traffic; digital sales account for 80 per cent of the total.

NEOM’s active customer base increased by 120 per cent, with a 204 per cent increase in total customers placing an order, supporting own e-commerce sales growth of 180 per cent.

EBITDA – a metric used to evaluate operating performance – increased significantly to £4.9m, which NEOM said reflected its operational leverage and profitable model.

The brand’s digital expansion was complemented by the expansion of its ‘well-being hub’ retail stores. In October 2020, NEOM opened its fifth well-being hub in new retail space adjacent to Liverpool Street station in London.

The momentum has continued into this year, with sales up more than 60 per cent in the first half of 2021 compared with the same period in 2020.

Describing 2020 as “transformational” for the company, NEOM co-founder and CEO Oliver Mennell said: “Underpinned by our strong momentum, digital-first model and the significant growth opportunity in the UK and internationally as more and more consumers prioritise wellbeing in their discretionary spend, we are on course to deliver further similar high growth in the second half of 2021 and beyond.

“The NEOM brand has incredibly exciting growth opportunities supported by our relentless focus on new product development, accelerated consumer shifts towards digital and DTC [direct to customer] channels, and international expansion opportunities to build on NEOM’s rapidly developing position in the US market and significant opportunities in other fast-growing well-being markets, such as China.”