The EG-Group-managed bakery café chain says turnover is above pre-pandemic levels but is adopting a cautious outlook for 2023 following sustained economic uncertainties in the UK
Cooplands operates approximately 185 retail outlets alongside 12 café concepts | Photo credit: Cooplands
Cooplands has reported revenue growth and turnover exceeding pre-pandemic levels for its latest financial year, but rising inflation saw the UK bakery café chain make a loss.
The Yorkshire-based company said sales reached £68m ($82m) for the 12 months ended 31 March 2022, 30% higher than the previous year and 28% higher than 2020.
However, Cooplands reported a loss of £770,000 ($935,000) for the period, compared to a £1.3m ($1.6m) profit the year previously.
Cooplands was acquired by UK-based petrol station forecourt operator EG Group in October 2021 for an undisclosed sum.
Predominantly based in the north of England, Cooplands operates approximately 185 retail outlets alongside 12 café concepts and three bakery production facilities.
EG Group Managing Director Zuber Issa said the company was still committed to accelerating Cooplands’ growth over the next few years, utilising its petrol station forecourt network.
However, he warned that rising inflation and tightened consumer spending are likely to impact profit margins in the next 12 months.
“Going forward, the outlook for the economy remains uncertain. Like many businesses in our sector which have been impacted by raw material inflation, in particular cooking oils and flour, as well electricity costs, margins will continue to be challenged. Record levels of inflation in the UK economy will impact consumer spending. We will continue to look for innovative solutions to offset these pressures, while also maintaining levels of product quality and great customer service,” he said.
In November 2022, EG Group credited the expansion of its foodservice brands as strongly contributing to its $8bn third quarter sales. Gross profits for its foodservice brands grew 5% to $179m.
EG Group also owns UK food-to-go and coffee chain LEON and licensed branches of prominent brands such as Starbucks, Cinnabon and Greggs.