Cake Box sees FY profits 'slightly ahead' of market views

8th Apr 2024 07:16

(Sharecast News) - Cake Box said on Monday that full-year profits were set to be "slightly ahead" of market expectations following strong growth across the business.

In an update for the year to the end of March, the egg-free cake retailer said the "increasing momentum" seen at the start of the second half continued for the rest of the year, with further new store openings, positive sales growth from the enhanced marketing campaigns and higher online sales - including the increasingly popular 'click and collect' feature.

As a result, it expects to report a jump of around 9% in year-on-year in revenues.

"The group continues to balance cost control whilst investing in its growth areas," it said. "We have benefited from the continued stabilisation in the cost of raw materials during the year and have seen further efficiency benefits from previous investment in the business. Consequently, this combined with the increase in revenues means the group expects to report adjusted profits slightly ahead of market expectations."

Cake Box said franchisee stores continue to perform well, with like-for-like sales expected to show an increase of around 4.4% year-on-year.

Co-founder and chief executive Sukh Chamdal said: "We are delighted to have delivered a year of solid growth in all our key performance areas and full year profits slightly above expectations despite the backdrop of uncertain macroeconomic conditions.

"We expect to report an increase in all key financial metrics, an uptick in sales of products online including our 'click and collect' offer as well as in-store sales and an increased number of franchise stores. We are very pleased with the feedback from the launch of the new Cake Box brand identity from our customers, which will continue to bring new customers to experience our wonderful products."