Cake Box FY profits rise on surge in online sales

(Sharecast News) - Bakery chain Cake Box said on Wednesday that full-year revenues and profits had risen thanks to a sharp increase in online sales.
Cake Box posted a 23.8% jump in overall profits to £10.9m thanks to another period of "strong growth in an unprecedented year". Adjusted earnings per share were up 23.1% to 9.6p.

Group revenues were up 16.9% to £21.9m, while online sales grew 84% year-on-year.

The AIM-listed group also stated that gross margins had improved three basis points to 49.7%, while cash from operations improved to £5.2m from £3.4m.

Cake Box also declared a final dividend of 3.7p after refraining from paying one in the prior year.

Chief executive Sukh Chamdal said: "In June 2020, amidst the onset of the pandemic, I wrote that 'there will still be birthdays, marriages and numerous other occasions, large and small, to celebrate up and down the country' and our performance this year has clearly shown this to be the case as we cautiously emerge from the pandemic.

"We have achieved record results during a year which included a global pandemic and the temporary closure of our entire store estate. We have ultimately emerged a bigger, better business."

Cake Box added that it now plans to open multiple new franchises across the country.

As of 1345 BST, Cake Box shares were up 3.41% at 334.0p.