Cake Box trading as expected in first half

18th Oct 2023 09:11

(Sharecast News) - Cake Box said on Wednesday that trading in the first half of the year was in line with its expectations, with revenues and profits set to jump.

In an update for the six months to 30 September, the egg-free cake retailer said revenues are expected to have risen around 6% year-on-year, with adjusted profits ahead of the prior year.

The performance reflects continued "strong" like-for-like franchise store sales growth and further new store openings, the company said.

Franchisee store like-for-like sales rose 6.2% for the half year, a significant improvement on the 1.6% fall reported in the same period a year earlier.

Cake Box said the cost of raw materials has remained stable since the second half of the prior year and franchisees have seen some relief from inflationary pressures, with an easing in utility and fuel prices.

Chief executive Sukh Chamdal said: "We are pleased with our first half performance, delivering a recovery in sales and margins as raw material and input prices have stabilised. Our brand continues to grow and we have made further strides with our marketing initiatives, with the successful launch of our new website in June 2023 already boosting our online sales channel.

"We enter the second half of the year with good momentum and remain confident in our growth prospects following the investment in our operations and our enlarged and enhanced operational team."