Cake Box hails resilient business model as it grows full year revenue
Cake Box Holdings, the specialist retailer of fresh cream cakes, has reported a 5.6% uplift in full year group revenue to £34.8 million, which it attributed to its resilient business model.
However, EBITDA decreased by 24.3% to £6.7 million as a result of a planned increase in overheads and lower than anticipated revenue growth during the year. Meanwhile adjusted EBITDA was 16.9% below the prior 12 month period.
During the year, Cake Box opened 20 new franchise stores which meant it had a total of 205 in operation as at the period end. It also expanded its supermarket kiosk offering with the introduction of 18 supermarket kiosks, and made a significant investment in its baking facilities at Enfield which resulted in an improved baking yield.
Sukh Chamdal, chief executive of Cake Box, said: “During the year we have continued to innovate to meet the needs of our customers, worked on improving our operational infrastructure despite facing a unique set of macro-economic pressures and continued to grow sales and margins. We are looking at new ways to reach our customers and the new website offers many new marketing opportunities.
“We have continued with our steady store opening programme to add to the 205 Cake Box shops we had at year end. As we approach the 250 target number of stores we set ourselves at our IPO almost 5 years ago to the day, we continue to look to stretch ourselves with a new target of 400 and new ways to provide the UK consumer with our unique egg-free fresh cream cakes.”
Giving an update on current trading, Cake Box said it is optimistic about the prospects for the new financial year due to its sales performance remaining robust. Franchise sales have increased by 5.4% on a like-for-like basis in the last 11 weeks.
Chamdal added: “The market outlook is improving, our capabilities have been expanded, and the Cake Box brand is stronger than ever. We have the right platform in place for the Group’s development to accelerate over the coming year and beyond.”
