Cake Box (CBOX) H2 2024 earnings summary

Executive summary

• Achieved strong sales and profit growth for FY2024, 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.

• Strategic initiatives in brand refresh, IT, and customer database investments contributed to robust performance, with a successful rollout of new store concepts.

• Maintained cost discipline and trading momentum despite challenging macroeconomic and retail sector conditions.

• Significant growth in online sales and customer database, with a new website boosting e-commerce and acquisition.

Financial highlights

• Franchise sales up 9.1% year-over-year to £78.8m; group sales up 8.7% to £37.8m; like-for-like franchise sales up 4.4%.

• Adjusted EBITDA rose 12% to £7.5m; adjusted EPS up 4.2% to 11p; adjusted profit after tax up 4.2% to £4.4m.

• Net cash increased 19.5% to £7.3m; free cash flow for the year at £6.3m, in line with prior year.

• Dividend per share increased 10.8% to 9p.

• Online sales grew 16.1% year-over-year, now 21.8% of total sales.

Outlook and guidance

• Trading environment for 2025 expected to be challenging due to economic uncertainty and high interest rates; retail sector outlook remains difficult.

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

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

• Long-term growth includes potential international expansion, though not yet modeled.