Cake Box like-for-like sales rise 6.8%

Cake Box’s franchisee stores reported a like-for-like sales increase of 6.8% for the first 17 weeks of FY24 ended 31 March, showing an increase from 5.4% like-for-like sales growth for the first 11 weeks. 

The specialist retailer of fresh cream cakes attributed its performance to tight cost control and proactive action to minimise the inflationary impacts on its input and administrative costs. 

However, there have also been some improvements in input costs to the group, with fresh cream prices decreasing in Q1.

Cake Box revealed that its cash position at close of business on 30 July stood at £7.9m, which will amount to £2.2m on 29 August after paying the proposed final dividend of 5.5p per share for FY23. 

During the period, the retailer has increased its investment in marketing, focusing on growing the confectionary brand by expanding its digital and ecommerce capabilities. 

While the company’s new website went live in June, Cake Box is also focusing on increasing its geographic presence by opening a further seven new franchise stores. The group now trades out of 212 franchise stores as of 30 July.

As a result of its progress, Cake Box believes it is on track to deliver year-on-year revenue growth in line with market expectations. 

Along with the trading update, non-executive chairman of Cake Box, Neil Sachdev, revealed his intention to step down at the group’s half year results in November after more than five years to “concentrate on his growing commitments outside of Cake Box”. 

Sachdev said: “Cake Box is a fantastic business that has grown significantly since our IPO over five years ago. I am proud of what we have achieved, building a company that now has over 100 franchisees including a large number of female franchisees running their own businesses. 

“We have a strong leadership team who I am confident will continue our growth in the years to come.”

The board will initiate a recruitment process to appoint Neil’s successor.