Krispy Kreme

Krispy Kreme UK plans to continue expansion with more shops in quality, high profile locations in 2024.

In its latest accounts posted to Companies House, the retailer and wholesaler of doughnuts said it will also invest further in digitally enhanced cabinets, expand with existing and new Delivered Fresh Daily partners, and further expand reach and sales via digital channels this year.

The group is continually reviewing the situation in Ukraine and the Middle East, the inflationary pressures faced in the UK, the changes in the consumer behaviour and are taking steps to mitigate the risks.

It is satisfied that the company strengthened its position during 2023 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrate “resilience and ability to remain both highly profitable and cash generative.”

For the 52 weeks to 31 December 2023, operating profit was £6.08m, compared to £4.96m in 2022. Profit after tax was £4.64m, compared to £4.06m the previous year. Revenues for the 52 weeks were £119m, an increase of 1.0% on the previous period. 

CFO Trevor Christian said the business had “progressed well” during the period despite challenging market circumstances in the UK.

During the year the company continued to refine its retail estate, operating 129 retail locations across the United Kingdom, increasing the net shop count by 4 on 2022.

The company continued to grow access points, refine and develop its Delivered Fresh Daily (DFD) business with both new and long-standing partners and grew sales in the delivery and ecommerce channels as part of the omnichannel strategy.

2023 saw macroeconomic challenges in the UK economy with cost-of-living crises impacting consumer disposable income, inflation impacting input cost and lack of labour and goods in the market place impacting operations.

The directors have during the year carefully considered the impacts of all market challenges impacting the business and responded appropriately to protect the business, its employees, and the brand.

Actions taken during the year include locking in contracts for input price stability, improving employee pay, working to reduce cost in overheads and taking price increases.

“This has been paired with a continuous drive in doughnut innovation to deliver a strong brand experience for the customer now and in the long term,” Christian added.