Cake Box FY profit slightly below expectations

(Sharecast News) - Egg-free cake retailer Cake Box said on Monday that full-year profit came in slightly below expectations as the Covid-19 pandemic impacted trading in March but that current trends were improving.
In the year to the end of March, adjusted pre-tax profit fell to £3.8m from £4m in 2019, but revenue jumped 10.8% to £18.7m.

Cake Box said the "strong" revenue performance was achieved "despite a disruption in sales across our franchise stores as the Covid-19 pandemic started to impact trading during the final month of our financial calendar year in March 2020".

As previously announced, the company did not propose a final dividend.

Franchisee total turnover rose 19% to £36.5m, while franchisee online sales increased 25% to £5.5m. There was like-for-like sales growth of 2.0% in franchise stores compared to 6.5% in 2019, with LFL sales growth of 5.1% in the period to 8 March 2020, before the impact of the coronavirus.

Since 1 June, 131 of its 133 stores have reopened, offering a limited menu of products. Cake Box said it has seen an "improving trend" since stores reopened, with 75% currently trading at pre-Covid levels.

The company, which started delivery of cakes with Uber Eats and Just Eat in May and most recently Deliveroo, said online sales since the period-end were up around 60% compared to the same period a year ago.

Chief executive Sukh Chamdal said: "We're pleased to report another strong performance for the year, demonstrating the ongoing appeal of our brand and unique customer offer.

"We have a strong pipeline in place to help continue to grow the Cake Box family and are developing new, innovative ways to extend our customer reach. This includes the expanded trial of our shopping centre kiosks and supporting our Click and Collect offer that has proven very popular during lockdown.

"With a strong balance sheet, operational flexibility and a capital light business model, we remain confident in the group's future prospects."