Patisserie's profit up 9.8% to £89.3m
Its online sales are up 26% to £4.8m from £3.8m in 2016.
The company's EBITDA is £25.6m, an increase of £3.4m or 15.7% from £22.2m in 2016, and profit before tax is £20.2m, an increase of £3.0m or 17.1%. Basic earnings per share are 16.36 pence per share and diluted earnings per share are 16.20 pence per share, an increase of 19.1%.
In a release, the company said, "In the first half of the year we experienced rising costs with prices returning to normalised levels in the second half of the year. We worked hard with our suppliers to manage costs and also realised production efficiencies from investment in our bakeries in the prior year which resulted in a stable gross profit margin of 78.2% (2016: 78.1%). Although the inflationary environment appears to be easing, we remain alert to any pricing pressures."
The management team achieved its target of opening 20 new stores and tested a number of new markets, including expansion into the Republic of Ireland, first Philpotts branded store opening, and the trial of Patisserie Valerie product within Sainsbury's.
Executive chairman Luke Johnson said, "We have delivered another year of excellent financial results, achieving our targets in a challenging environment. We opened 20 new stores many of which are performing ahead of expectations, and the performance of our new bakeries in the Republic of Ireland is encouraging. Our indulgent, affordable treats remain attractive to customers, and our flexible business model has enabled us to mitigate inflationary cost pressures. With a highly cash generative group, strong brands and a focused management team I remain confident of another year of growth and achievement."
Photo credit: Groupon
