Patisserie Holdings interim profit and revenue rise
(ShareCast News) - Patisserie Holdings reported a rise in profits and revenue for the six months to the end of March, as it continues to focus on expansion.
Pre-tax profit was up 16% to £9.7m on revenue of £55.5m, up from £50m in the first half of last year. Meanwhile, basic earnings per share rose to 7.95p from 6.68p and the interim dividend was lifted to 1.20p per share from 1.00p.
Revenue from the company's principal brand, Patisserie Valerie, was up 15.7% to £40.4m, with revenues from its other brands 0.6% higher at £15.9m. Meanwhile, revenue from the company's website grew by £200,000 to £1.6m.
The group said inflation on food costs was higher in the first half of the period but prices are now stabilising, with the majority of core ingredients now at normalised levels. In addition, pay rates continue to rise due to the impact of both the National Minimum and National Living Wage. However, with more effective rostering in stores and thanks to some minor central changes, the group said it has limited the impact of pay pressures.
Patisserie Holdings still plans to open 20 new stores a year and in the period to date, has opened 10 new stores - which it said were trading strongly - and closed two due to leases expiring.
Executive chairman Luke Johnson said: "We have delivered another strong set of results with growth in both revenues and profit and excellent cash conversion despite the challenging market conditions and the current inflationary environment.
"With a strong balance sheet and an experienced management team, we remain operationally focused on the organic delivery and continue to assess acquisition opportunities. Accordingly I am confident of delivering a successful second half of the year and beyond."
In April, the company entered into a 12-week agreement with Sainsbury's to supply 12 nationwide stores with its product, which is being sold in-store from Patisserie Valerie branded counters at Patisserie Valerie price points.
At 1015 BST, the shares were up 4.3% to 333.68p.