Cake Box says sales slowed as summer sun slices profits
The hot weather and cost living sliced into Cake Box’s trading success in the last six months, as the premium cake maker struggles to keep up with strong comparators.
Although group revenues were up a humble 2.1 per cent to £16.8m, EBITDA and pre-tax profit plunged over 32 per cent as cost pressures start to take their toll.
“Although revenue increased, trading in the first half of the period was against a very strong comparative period last year, and was impacted by exceptionally hot weather which went on for a far longer period than normal,” said chief exec Sukh Chamdal.
“In addition, higher levels of international travel in July and August, were coupled with the rising cost of living and inflation,” he added.
However, Cake Box said that sales started to improve towards the end of the summer, with momentum continuing into October.
Franchise sales are up like-for-like 4.6 per cent and online sales increasing 6.8 per cent in October versus last year
The London-listed firm therefore backed its current full year market expectations.
Cake Box shares dipped in pre-market trading, adding to its 70 per cent decline in the year to date.