Krispy Kreme planning to open more UK stores and expand delivery offering, turnover up but profits and Ebitda down:
Krispy Kreme has said it is planning to open more UK stores and expand its delivery offering, as it reported a rise in turnover but fall in profits and Ebitda for the year ending 1 January 2023. Revenue for Krispy Kreme UK grew from a restated £107,158,000 in the year ending 2 January 2022 to £117,156,000. Pre-tax profits fell from £14,057,000 in 2021 to £5,150,000. Adjusted Ebitda was down from £23,666,000 in 2021 to £16,814,000. This represented 14.4% of sales (2021: 22.1%) and a 21.3% return on investment (2021: 31.5%). The company said the major difference in Ebitda was due to “significant increase in commodities and other input costs as well as one-off benefits in 2021 related to insurances and leases”. A dividend of £2,400,000 was paid in October 2022 and £3,540,000 in December 2022 (2021: £4,237,000). It received £37,000 in Retail Grant Fund payments (2021: £366,000) and no Coronavirus Job Retention Scheme payments (2021: £942,000). Director Caroline Wullrich, in her statement accompanying the accounts, said: “The company has progressed well during the period despite challenging market circumstances in the UK. The company continued to grow access points, refine and develop its Delivered Fresh Daily (DFD) business with both new and long-standing partners and grew sales in the delivery and ecommerce channels. Actions taken during the year include locking in contracts for input price stability, improving employee pay, working to reduce costs in overheads and taking price increases. The directors are satisfied that the company continued to strengthen its position during 2022 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrates its resilience and ability to remain both highly profitable and cash generative. In 2023, the company will continue to expand its presence with plans to open shops in quality, high profile locations, expand with its DFD partners, invest further in digitally enhanced cabinets and further expand reach and sales via digital channels.” The company said it has adequate funds for its investment plans and will continue to be supported by its US parent company. At year-end, the company operated 125 stores across the UK, up from 121 in 2021, while average staff levels rose 1,614 in 2021 to 1,765. Krispy Kreme features in Propel’s Turnover & Profits Blue Book. Its turnover of £117,156,000 in the year to 1 January 2023 is the 62nd highest in the database. Its pre-tax profit of £5,150,000 is the 122nd highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email firstname.lastname@example.org to upgrade your subscription.
Brewhouse & Kitchen considering its options as it looks to refinance but optimistic about the future, latest opening ‘trading well’: Brewhouse & Kitchen, the UK’s largest brewpub group, has said it is considering its options as it looks to refinance but is optimistic about the future. It also said its latest opening, which opened in Duke Street, Chelmsford, in March, is trading well. “The company will continue to consider its options as it navigates its way through the utility and food cost minefield faced by hospitality,” said chief executive Kris Gumbrell. “The bank has been very supportive in agreeing to extend a term loan due in December 2022 initially through to September 2023. At the same time, negotiations are being held to extend this facility by a further four years while also looking to increase the size of the loan as part of a wider refinancing package. Should this not proceed, the directors have other vehicles for releasing cash. The new brewpub at Chelmsford continues to trade well and the board remains very optimistic for the future of Brewhouse & Kitchen.” It comes as the company reported turnover of £16,400,034 for the year ending 24 September 2022, up from £9,416,861 in 2021. This compares to £15,167,247 in the last full year before the pandemic, ending 28 September 2019. Pre-tax losses grew from £1,885,844 in 2021 to £2,323,437 (2019: loss of £975,778). The company received £66,000 in government grants compared to £2,068,080 in 2021. Gumbrell said: “The year finished with growth of 74% against the previous year, the numbers being significantly distorted due to the pandemic. The year was able to show real terms growth of 1.3% against 2019, despite the operational disruption of the pandemic. Liquor margin was particularly strong in the year, driven by a further significant increase in own brewed beer sales and a more agile procurement policy. Food margin proved more challenging, but the company has been working closely with a procurement partner to show much improved food margin going into the current financial year, despite the high food inflationary costs being experienced. The company has continued to reduce its debt and had a significant healthy cash balance at the year-end of £2.9m. We have continued to invest into our estate with developments at Dorchester and Highbury, and our partner franchise business in Sutton Coldfield. Brewhouse & Kitchen continues to be the leading experiential and craft beer provider within the pub sector, and with over 75% of the entire group being freehold, the balance sheet remains strong.” The wider group operates 23 Brewpubs across the UK, including eight franchise partner businesses. Some 6% of its workforce are now in apprenticeships while vacancy rates stand at just over 5%.
Greggs applies to open two regional branches 24 hours a day: Greggs has applied to open two of its regional branches 24 hours a day – a year after being blocked from doing so in London. It has submitted plans with both Liverpool City Council and Canterbury City Council, reports the Liverpool Echo and Kent Online. The company wants to extend the opening hours at its Lord Street venue in Liverpool and St George’s Street store in Canterbury around the clock, seven days a week. The company has asked for licences which would allow both premises to serve late night refreshment from 11pm to 5am. Last summer, Greggs was blocked by Westminster Council from operating its new flagship site in London’s Leicester Square through the night. However, in May, Greggs, which is also planning to trial 24-hour drive-thrus, won the right to trade there until 2am instead. The plans have met with some opposition from local politicians in Kent. Councillor Pip Hazelton said: “We absolutely want to encourage business in the city – we want to see people thrive and make a go of it in the area. But barring McDonald’s, we’re not aware of any other operatives being given a 24-hour licence. It’s a slippery slope. People do live in the city centre and saying yes sets a dangerous precedent, when do we say no? St George’s Street has always somewhat suffered from anti-social behaviour. A lot of residents aren’t happy about existing businesses operating the way they do, and ultimately, the question is will the city benefit from this?” It comes as Liverpool last week became the latest city to have a Greggs cafe added to its Primark. It has opened a Tasty by Greggs on the second floor of the Church Street store as part of a £3m renovation which has seen it grow to over 94 square feet, spread across five floors. It is the fifth Greggs cafe to have opened in a Primark store following the concept’s launch in Birmingham last year.