Sales rebound strongly for doughnut maker Krispy Kreme

Revenues surge by 51% to €6.98m on the back of a new store opening in Dublin

A queue gathers outside Krispy Kreme Liffey Valley Store on its opening day in June. Picture: Leon Farrell/Photocall Ireland

The Krispy Kreme business here last year recorded weekly revenues of €134,326 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 revenues surged by 51% to €6.98m on the back of a new store opening at the Pavillion Shopping Centre at Swords in north Dublin last November.

The company recorded a 6% decrease in pre-tax profits to €1.16m in the 52 weeks to the end of January 2 this year despite the €2.37m increase in revenues.

The decrease in profits arose from higher costs as Krispy Kreme continued its expansion here beyond its record-breaking doughnut-selling store in Blanchardstown to open its second stand-alone outlet here in Swords.

In the current year, the company has advanced its expansion plans with a new outlet at One Central Plaza, Dame Street in Dublin City Centre, two weeks ago.

The directors said that with the easing of the Covid-19 restrictions during the year “the retail segment saw uplift in sales and new stores were opened”.

Expansion costs

The expansion contributed to administrative expenses last year increasing by 73% from €1.76m to €3.04m The pre-tax profit takes into account combined non-cash depreciation and amortisation costs of €611,000.

The expansion of the business contributed to the firm’s operating lease costs increasing from €218,000 to €305,000.

The opening of the new store at Swords also contributed to numbers employed rising from by 18 from 55 to 73 and the 73 were engaged in sales and manufacturing.

The Blanchardstown business had to close from March to May 2020 during the first lockdown and Krispy Kreme received €121,000 in Government Covid-19 wage supports and it received no State Covid-19 wage supports last year.

The firm paid out no dividend last year after paying a dividend of €1.66m in 2020.

The opening of the Blanchardstown store on September 26, 2018, was greeted by a consumer mania not seen in Ireland in recent years. There was a queue of 300 people when the store opened its doors at 7am on its first day of operation.

The company recorded a post-tax profit of €1.008m last year after paying corporation tax of €159,000.

The company’s earnings before interest, depreciation, tax and amortisation (EBITDA) last year totalled €1.77m compared to €1.76m in 2020.