The Irish arm of doughnut maker Krispy Kreme last year recorded a pre-tax loss of €1.3m as economic conditions impacted store footfall and rising cost pressures.
New accounts show that last year Krispy Kreme Ireland Ltd recorded the pre-tax loss as revenues decreased by 5.5% from €14.94m to €14.12m.
The pre-tax loss of €1.3m followed the company enjoying a pre-tax profit of €112,000 in 2023.
The directors state that during the year, the firm continued to grow its retail estate and on December 29 last operated 14 retail locations – an increase of two during the year.
The directors state that the company also continues to grow access points in its DFD (Delivered Fresh Daily) with several partners.
The doughnut maker’s retail locations here include the Swords Pavilions Shopping Centre in north Dublin, Liffey Valley Shopping Centre, Dundrum Town Centre and One Central Plaza, Dame Street in Dublin along with outlets in Galway, Limerick and Cork.
The directors state that “the company has progressed well during the period despite challenging market circumstances”.
The business has steadily expanded its retail network here following the opening of its record breaking doughnut selling store in Blanchardstown in September 2018.
The directors state that the premium quality doughnuts are freshly made every day with quality ingredients, utilising a secret recipe, in a vertically integrated production process.
On the performance of the business last year, the directors state that “the company began 2024 with a clear growth agenda ahead and has operated in a challenging economic market environment with macroeconomic factors affecting footfall in the shops and cost pressure in all input cost lines”.
The directors state that “the company continues to look forward to a future of continuous investment and growth as it further establishes its footprint in the market by adding new retail shops and growing in its DFD business (Delivered Fresh Daily) by adding new partners”.
They also state that they “are satisfied that the company has continued to strengthen its position during 2024 with a portfolio of strong retail locations, successful partners and diversified routes to market that demonstrate its resilience and ability to be both profitable and cash generative”.
The firm recorded Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of €968,000 compared to €2.06m in 2023.
The pre-tax profit takes into account non-cash depreciation costs increasing from €1.74m to €1.88m.
The company recorded an operating loss of €927,000 and after taking into account finance charges of €373,000, the firm recorded a pre-tax loss of €1.3m.
The expansion of the business contributed to the firm’s operating lease costs increasing from €910,000 to €1.1m.
The accounts show that despite the opening of two new stores, numbers employed reduced from 181 to 167.
Staff costs increased from €4.68m to €4.95m. Directors’ pay totalled €111,000.
At the end of December last, the company’s accumulated profits stood at €761,000. Cash funds totalled €1.16m, today’s figures reveal.
Reporting by Gordon Deegan
