The donut and coffee chain has reported steady 2022 UK revenues and expects to open more outlets in ‘high profile locations’ and boost digital sales throughout 2023
As of 1 January 2023, Krispy Kreme operated 125 stores in the UK | Photo credit: Krispy Kreme
Krispy Kreme is seeking further UK outlet and digital sales growth in 2023 following robust revenues last year.
Reporting on the 52 weeks to 1 January 2023, Krispy Kreme Holding UK Ltd, which operates the donut and coffee chain across the UK and Ireland, said it has adequate funds for its investment plans following strong growth across segments in the UK in 2022.
Krispy Kreme UK achieved 9% year-on-year sales growth to reach £117m ($149m) last year, but saw adjusted Ebitda fall to £16.8m ($23m) from £23.6m ($30m) in the corresponding period of 2021.
The business cited rising commodity costs and ‘one-off benefits related to insurances and leases’ in 2021 for the decline. Additionally, Krispy Kreme UK said it increased prices, improved employee pay and locked in contracts to mitigate against inflation and a ‘lack of labour and goods in the marketplace’.
As of 1 January 2023, Krispy Kreme operated 125 UK stores, four more than at the end of 2021.
The donut and coffee chain is planning to open more UK stores this year with a focus on ‘quality, high profile locations’.
Krispy Kreme UK is also seeking to expand its delivered fresh daily model, which includes distribution of donuts to supermarket and convenience stores, and increase digital sales.
“The directors are satisfied that the company continued to strengthen its position during 2022 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrates its resilience and ability to remain both highly profitable and cash generative. 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 cabinets and further expand reach and sales via digital channels,” said Caroline Wullrich, Director of Krispy Kreme UK, in her statement accompanying the accounts.
Headquartered in Charlotte, North Carolina, Krispy Kreme operates in more than 30 countries worldwide. In February 2023, the US donut and coffee chain said total 2022 revenues increased 10.5% to $1.53bn.