Revenues surged by 51 per cent to €6.98 million but profits fell at the Krispy Kreme business in the Republic last year as the doughnut-maker expanded its business and recovered from the early phases of the Covid-19 pandemic.
New accounts filed by Krispy Kreme Ireland Ltd show that the business recorded a 6 per cent decrease in pretax profits to €1.16 million in the 52 weeks to the end of January 2nd this year despite the €2.37 million increase in revenues.
The decrease in profits arose from higher costs as Krispy Kreme maintained its expansion beyond its record-breaking doughnut-selling store in Blanchardstown, Dublin.
Last November, the US-owned company opened its second standalone outlet here at the Pavilion Shopping Centre in Swords in north Dublin.
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Earlier this month, the company opened an outlet at One Central Plaza, Dame Street, in Dublin city centre.
In notes with the latest accounts, Krispy Kreme Ireland directors said the business “has remained profitable and is able to look forward to a future of investment and growth”.
They said the company “began 2021 with the retail operations impacted by Covid-19 restrictions and hence focused on sales and investment in the grocery partners in the early part of the year”.
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The easing of Covid-19 restrictions during last year meant “the retail segment saw uplift in sales and new stores were opened”, they noted.
The expansion contributed to administrative expenses last year increasing by 73 per cent from €1.76 million to €3.04 million.
The pretax profit takes into account combined non-cash depreciation and amortisation costs of €611,000.
The expansion of the business contributed to the company’s operating lease costs increasing from €218,000 to €305,000.
Numbers employed increased by 18 from 55 to 73.
The Blanchardstown business had to close from March to May 2020 during the first Covid-19 lockdown and Krispy Kreme received €121,000 in Government Covid-19 wage supports. It received no Covid-19 wage supports last year.
