During the first year of 2024, Redhead generated a turnover of 25.2 million Swedish krona. However, last year saw sales grow by 220 percent, reaching 80.9 million Swedish krona. Operating profit increased from 4.2 million Swedish krona to 5.5 million Swedish krona.
The expansion did, however, result in a decrease in the operating margin from 16.6 percent to 6.8 percent. This change is a result of the company adjusting its pricing downwards as sales volumes exceeded initial calculations.
Future work is based on dialogue with customers to secure prominent placements in grocery retail.
We focus on good flavors and products. We are not fighting to be the cheapest, but to try to maintain the highest quality, says co-founder Varga Moshtagh.
Sweaters online and factory in Norrköping
Online, the company has chosen a different path. Through its e-commerce platform, Redhead exclusively sells merchandise, while all snack sales are tied to physical retail. This is despite the fact that all snack products are uploaded to the catalog. All that is missing is the buy button.
To meet demand and the recently initiated expansion into Finland, the company is now restructuring its supply chain.
Until now, production has been purchased from an external actor in Södertälje, but during early 2027, the company will commission its own facility. The factory in Norrköping, with a capacity of 300 kilograms per hour, will be specifically adapted to reduce the proportion of damaged contents in the bags. The project represents the company's largest expense to date.
We get total freedom over how we want to make the chips, over flavoring, over the size of the bags, everything, says Mauri Hermundsson to the website.