Cake Box (CBOX) H2 2024 earnings summary

Executive summary

• Achieved strong sales and profit growth, outperforming market expectations and delivering increased net cash and balance sheet strength.

• Opened 20 new stores, reaching 225 total, and launched a national marketing fund supported by franchisees.

• Significant growth in customer database and online sales, with a successful brand refresh and new store concept rollout.

Financial highlights

• Total franchise sales up 9.1% year-over-year to £78.8m; like-for-like franchise sales up 4.4%.

• Group revenue increased 8.7% to £37.8m; gross profit up 16.1% due to efficiency gains.

• Adjusted EBITDA rose 12.0% to £7.5m; adjusted profit after tax up 4.2% to £4.4m.

• Net cash increased 19.5% to £7.3m; full year dividend up 10.8% to 9.0p.

• Adjusted EPS up 4.2%; free cash flow flat year-over-year at £6.3m due to working capital investment.

Outlook and guidance

• Trading for FY25 is in line with management expectations; retail sector outlook remains challenging.

• Plans to open 20+ new stores, continue brand refresh rollout, and grow customer loyalty through marketing.

• Focus on expanding multi-channel proposition and maintaining strategic progress.