Octopus Energy: Profit slashed as Greg Jackson’s giant battles rising costs
Profit has been slashed at Octopus Energy as rising costs and falling sales ate into its margin during the giant’s latest financial year.
For the 12 months to 30 April, 2024, the group reported a net profit of £83m, down from the £203m it posted in the prior year.
Its revenue also dipped from £12.54bn to £12.4bn over the same period. In its previous 12 months, the group’s revenue had tripled from £4bn.
In a statement Octopus Energy Group, which was founded by Greg Jackson, said its UK energy retail business had taken on another £74m of costs “to keep customer bills lower during the energy crisis and support the ones most in need”.
The group added that its non-UK retail customer base had tripled to 1.2m while its global workforce surged from 4,800 to 8,500.
Octopus Energy recently became the largest energy supplier in the UK and serves 7.3m households.
In May 2024, City PM reported that Octopus Energy is now worth more than £7bn after two of its largest investors increased their stakes in the company.
Octopus Energy founder Greg Jackson: ‘I’m proud of what we’
Greg Jackson, founder of Octopus Energy Group, said: “Supporting customers in difficult times has been our highest priority – with the lowest standard prices of any major company, we’ve absorbed millions of pounds in energy costs, we’ve sent another 30,000 free electric blankets to those most in need, and our energy helpers visited hundreds of thousands of homes to help cut bills.
“At the same time, we’ve continued our rapid expansion in international markets, low carbon technologies like EVs and heat pumps, and building new generation. Our software platform, Kraken, is changing the energy landscape.
“Octopus shows what’s possible with investors focused on the long term, rather than short-term profit maximisation.
“We’ve been able to focus on building outstanding technology, superb customer service and an incredible team.
“I’m proud of what we, as a UK business, have been able to build at home and export globally.
“This is sustainable, responsible capitalism – creating value for society, planet and shareholders.”
The results include the impact of Octopus Energy acquiring Shell Energy Retail in December 2023 which added 1.3 million customers.
The group added that its Kraken Technologies increased its recurring revenue by 68 per cent to £90m in the year.
‘Solid financial performance’
Co-founding CFO, Stuart Jackson, added: “FY24 has been another year of solid financial performance for the group, as we continue to build on the foundations of prudent financial management and sustainable growth.
“We delivered a second consecutive year of modest profitability, supported by the strength of our UK retail operations and Kraken licensing, and closed the year with a strong balance sheet of £1.7bn in net assets.”