Cake Box profits jump amid new store openings

(Sharecast News) - Cake Box posted a jump in full-year profit and revenue on Tuesday as the maker of fresh cream celebration cakes pointed to increased franchise store sales and new store openings. In the year to the end of March 2024, pre-tax profit rose 15.1% to £6.26m on revenue of £37.84m, up 8.7% on the previous year. Revenue growth was put down to an increase in franchise store like-for-like sales and the addition of 20 new stores opening in the year.

Earnings before interest, tax, depreciation and amortisation rose 15.6% to £7.70m.

Online sales grew 16.1% during the year to £16.1m and the total dividend per share was lifted 10.8% to 9p.

As far as current trading is concerned, Cake Box said its sales performance remains "robust", with trading in line with management expectations.

Chief executive Sukh Chamdal said: "It has been a successful year for Cake Box delivering robust growth across all areas of our business. Our strategic initiatives, including new store openings, enhanced marketing campaigns, and innovative product launches, have driven a 9% increase in revenues. We are pleased to have delivered full year EBITDA ahead of market expectations and to have also further strengthened our balance sheet.

"The launch of our new CRM system, e-commerce website, and brand refresh, along with the success of our increased investment in marketing, has enhanced our brand awareness and customer experience, improving our presence and helping to drive up demand."

At 1115 BST, the shares were up 5.7% at 185.00p.