Cake Box Holdings, a London-listed cake retailer, reported a decline in pretax profit for fiscal 2023, despite an increase in revenue and operating expenses. The company remains optimistic about the coming year.
For the year ending March 31, Cake Box’s pretax profit totaled £5.4 million ($6.9 million), down from £7.7 million the previous year. However, revenue increased by 5.6% to £34.8 million, slightly exceeding the growth forecast issued in April of around 5%. Like-for-like sales in franchise stores rose by 1% over the year.
The company announced a final dividend of 5.5 pence, up from 5.1 pence in fiscal 2022.
Cake Box expressed confidence in its sales performance, highlighting that franchise sales had increased by 5.4% on a like-for-like basis over the past 11 weeks. The company anticipates that inflation will begin to ease in some areas, which should support margin progression over the medium term.
Overall, Cake Box remains positive about its future prospects and is committed to delivering strong results in the year ahead.