Low-cost cakes beat Brexit blues as Patisserie Valerie’s owner reports profits and revenue are still growing
Economic uncertainty doesn’t stop consumers from indulging in inexpensive cakes, the owners of Patisserie Valerie have found.
Patisserie Holdings reported increased revenue and profits for the tenth consecutive year.
The figures
Revenue grew 13 per cent to £104.1m for the year ended 30 September, and online sales increased by 23 per cent to £3.8m.
Profit before tax increased by 18.2 per cent to £17.2m, and basic earnings per share increased from 11.41p to 13.74p.
Shares were up 4.65 per cent to 270p.
Why it's interesting
Patisserie Holdings reported revenue and profit growth for its tenth consecutive year.
The company opened 21 new stores this year funded by operating cash flows, including its first store in Northern Ireland with a bakery that has the capacity to support 10 additional stores.
A new standalone bakery in Edinburgh also creates opportunity for further expansion in Scotland.
The group finished the financial year with 184 stores and is well into its target of 20 new store openings per annum with six since the year end.
Wage increases and rising ingredient cost pressures were reduced throughout the year, but the company is keeping a watch for future increases.
What Patisserie Holdings said
Luke Johnson, executive chairman, said the results show the appeal of the Patisserie brand, the group's financial strength and the strong cash generation of the business model.
We have achieved growth in revenues and profits despite uncertain economic conditions, and for the first time we have exceeded revenues of £100m: a significant achievement. Our roll-out programme continues to deliver successful store openings and I am particularly pleased with the performance of our first store in Northern Ireland.
The strategy going forward is to produce strong organic growth, Johnson said. The performance of the first eight weeks of the year has been positive with the opening of six new stores.
We will continue to control costs and manage our supply chain in this period of macro-economic uncertainty, thus I am confident of another successful year of growth.