Krispy Kreme UK has initiated a multi-year turnaround plan to drive more sustainable, profitable growth in the wake of a loss-making financial year.
In its latest accounts filing to Companies House, the doughnut specialist said that its new management – including president and MD Guy Meakin appointed last November – was currently reviewing the locations of its retail stores and stockists with “a view to being where the customer is and ensuring the company is set up for the future”.
The continued impact of the cost-of-living crisis on spending on discretionary items such as its doughnuts, coupled with higher input costs and investments in growing its retail footprint, saw Krispy Kreme UK slump to a loss after tax of £6.2m for the 52 weeks ended 29 December 2024.
This ended a run of three successive years of profitability (£4.7m, 2023; £4m, 2022; £13.5m, 2021) having last recorded a post-tax loss in 2020 (£3.2m).
While Adjusted EBITDA was more than halved down to £7.5m from £16m in 2023, turnover increased by 0.13% to reach £119.9m last year. This was propelled by expansion of its retail estate, adding 11 net shops to end the year operating a total of 141 sites nationwide. Among these was a new flagship “theatre store” on London’s Oxford Street, which its former MD Jamie Dunning had described as a “physically immersive brand exercise”.
Krispy Kreme UK noted that its directors had carefully considered all market challenges in 2024 and responded appropriately to protect the business, its employees, and the brand. Action taken during the year included locking in contracts for input price stability, improving employee pay, and working to reduce cost in overheads.
It said this has also been paired with a continuous focus on driving doughnut innovation to deliver a strong brand experience for the customer now and in the long-term. Last summer, it marked its biggest range update in over a decade with the introduction of eight new doughnuts to its core range including the popular Cinnamon Swirl variety, while it also saw strong performances from limited-edition NPD partnerships with Nestle-owned chocolate bar brands KitKat and Aero and IP collaborations with Friends, Barbie, and The Grinch.
The company has redeveloped its Rewards platform, bringing on board a new CRM partner to improve the user experience, enable more personalised customer communications, and drive more loyal customers. These upgrades resulted in increased engagement and incremental revenue, it added.
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