The Irish arm of doughnut maker Krispy Kreme is eyeing further expansion here after its revenues last year topped €10 million for the first time.
New accounts show that expansion costs last year contributed to Krispy Kreme Ireland Ltd recording a pre-tax loss of €415,000 and this followed a pre-tax profit of €1.16 million in the prior year.
The accounts show that in the 12 months to the end of January 1st this year, the firm’s revenues surged by 43 per cent from €6.98 million to €10.01 million, or an average weekly revenue of €192,634.
The directors stated that during the year, the firm continued to grow its retail estate and on January 1st this year operated 10 retail locations.
The doughnut maker’s retail locations here include the Swords Pavilions Shopping Centre in north Dublin, Liffey Valley Shopping Centre, The Square Shopping Centre, Dundrum Town Centre and One Central Plaza on Dame Street in Dublin which opened in August 2022.
The business has steadily expanded despite the impact of Covid-19 following the opening of its record-breaking doughnut selling store in Blanchardstown in September 2018.
On the performance of the business in the year under review, the directors said “the company began 2022 with a clear growth agenda and has during the year grown despite a challenging economic market environment with significant cost pressures in all input cost lines”.
The directors add that “the company continues to look forward to a future of continuous investment and growth as it further establishes its footprint in the market”.
Deliveries
Along with having 10 retail locations on January 1st, the company continues to grow access points also in its DFD (Delivered Fresh Daily) with several partners.
The directors noted the Irish economy was impacted by high inflation last year, impacting consumers' disposable income, input cost and lack of labour and goods in the marketplace impacting operations.
In response, the directors said they have taken several actions during the year, including locking in contracts for input price stability, improving employee pay, working to reduce costs in overheads and taking price increases.
The directors stated they “are satisfied that the company has continued to strengthen its position during 2022 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrate its resilience and its ability to be both profitable and cash generative”.
The directors added: “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 channels and further expand reach and sales via digital channels.”
The firm recorded Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of €819,000 compared to €1.77 million in the previous year. The pre-tax profit takes into account non-cash depreciation costs almost doubling to €1.14 million.
The expansion of the business contributed to the firm’s operating lease costs increasing from €305,000 to €544,000.
The opening of new stores contributed to numbers employed more than doubling from 73 to 154 that included 149 were engaged in sales and manufacturing.
The opening of the Blanchardstown store on September 26th, 2018, saw a queue of 300 people when the store opened its doors at 7am, while thousands streamed through the doors during the first day to make the opening the biggest store opening for Krispy Kreme across the world at the time.
On January 1st this year, the company’s accumulated profits stood at €2.04 millon while its cash funds totalled €467,000.
