Cost-of-living slices into Cake Box's trading as profits drop

Cost-of-living slices into Cake Box’s trading as profits drop

14th November 2022

// Cake Box profits drop as hot weather and cost-of-living affects trading

// Profits dropped over 32% in last 6 months but revenues increased

Cake Box profits have plunged over 32% in the last six months as the cake maker struggles with cost pressures.

The company said EBITDA and pre-tax profit dropped during the period despite group revenue rising 2.1% to £16.8 million.

The hot weather and cost-of-living has affected trading as Cake Box struggled to keep up with strong comparators.

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“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,” Cake Box CEO, Sukh Chamdal said.

“In addition, higher levels of international travel in July and August, were coupled with the rising cost of living and inflation.”

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% and online sales increased by 6.8% in October versus last year.

General Retail

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General Retail

14th November 2022

Sahar Nazir

// Cake Box profits drop as hot weather and cost-of-living affects trading

// Profits dropped over 32% in last 6 months but revenues increased

Cake Box profits have plunged over 32% in the last six months as the cake maker struggles with cost pressures.

The company said EBITDA and pre-tax profit dropped during the period despite group revenue rising 2.1% to £16.8 million.

The hot weather and cost-of-living has affected trading as Cake Box struggled to keep up with strong comparators.

Subscribe to Retail Gazette for free

“In addition, higher levels of international travel in July and August, were coupled with the rising cost of living and inflation.”

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% and online sales increased by 6.8% in October versus last year.

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