Resilience pays off as Cake Box bakes its way back to success!

  • Cake Box reports a sustained recovery post-Covid-19 pandemic.
  • EBITDA increased by 0.5% to £1.98m, while pre-tax profit fell by 4% to £1.66m.
  • Online sales surged by 51% due to new home delivery partnerships.
  • Like-for-like sales across franchise stores rose by 12.7% in October.
  • CEO Sukh Chamdal highlights resilience and strong trading momentum.

Cake Box has reported a notable recovery since the height of the Covid-19 pandemic, during which its stores were closed for six weeks. For the six months ending on September 30, the company’s EBITDA saw a slight increase of 0.5%, reaching £1.98 million, although pre-tax profit dipped by 4% to £1.66 million. A significant highlight was the 51% rise in online sales, driven by the introduction of new home delivery services in collaboration with Uber Eats, Just Eat, and Deliveroo. The company also noted that trading has been promising in the first six weeks of its second half, with like-for-like sales across its 139 franchise stores climbing by 12.7% in October. Sukh Chamdal, the CEO of Cake Box, expressed pride in the company’s resilience during this challenging period, stating that they have emerged stronger. He pointed out the impressive trading momentum since reopening, with franchisee like-for-like sales up by 12.1% and online franchisee sales soaring by 51%. Additionally, the company opened six new franchise stores and received a record number of new store applications. Chamdal expressed confidence that the momentum in their national rollout will return to pre-Covid levels, attributing this success to the hard work of their franchisees who have remained committed to providing excellent service and delicious products during tough times.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Cake Box’s financial performance during the Covid-19 pandemic, including their recovery, EBITDA, pre-tax profit, online sales growth, and franchisee performance. The CEO’s quotes are relevant to the company’s situation and provide insight into their confidence in future growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Cake Box’s recovery after the Covid-19 pandemic and its online sales growth. It also includes quotes from the CEO, but it lacks a broader analysis or context on the overall impact of the pandemic on the industry or insights for readers to apply in other situations.
Financial Relevance: Yes
Financial Markets Impacted: Cake Box’s financial performance
Financial Rating Justification: The article discusses Cake Box’s financial results and impact of the pandemic on its business operations, including changes in EBITDA, pre-tax profit, online sales, and franchisee performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

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