Cake Box revenue rises despite 'challenging' consumer environment
By Josh White
Date: Wednesday 26 Nov 2025
(Sharecast News) - Cake Box reported a sharp increase in revenue in the first half of its financial year on Wednesday, supported by organic growth, new store openings and the initial contribution from recently acquired Ambala Foods, although higher interest costs weighed on profits.
For the 26 weeks ended 28 September, group revenue rose 53.5% to £28.8m, while underlying EBITDA increased 33.3% to £4.6m.
Underlying profit before tax slipped 4.5% to £2.7m due to increased financing charges linked to the Ambala acquisition.
Statutory profit before tax fell 7.4% to £2.6m, while the interim dividend was raised 5.9% to 3.6p per share.
The AIM-traded fresh cream cake retailer said organic growth at the core Cake Box business drove an 18.9% increase in revenue to £22.3m.
Ambala contributed £6.5m of revenue and £0.4m of underlying EBITDA in its maiden period of consolidation.
The group ended the half with 284 stores, including nine new Cake Box sites and two new Ambala franchise units, with further openings already completed since the period ended.
Chief executive Sukh Chamdal said the company's growth strategy was gaining traction across physical and digital channels.
"We are pleased to report a strong performance in the first half of the year, resulting in a 53.5% revenue growth and a 33.3% increase in underlying EBITDA," he said.
"This was driven by sustained consumer demand for our diverse product portfolio, the successful opening of nine new Cake Box stores and continuing strategic investments in our digital platform, which have significantly enhanced our online presence."
Digital engagement continued to expand, with online sales up 25.9% year-on-year, 2.6 million website visits and a 29% increase in the subscription database.
Franchise store sales, including kiosks, rose 14.6% to £47.6m, supported by marketing initiatives and new product launches, while like-for-like sales grew 6.3%.
Chamdal said integration of Ambala was on schedule and expected to add momentum in the second half.
"This period marks a maiden contribution from Ambala, following its acquisition by Cake Box in March.
"We are pleased to report that the integration process is progressing smoothly, with a number of operational efficiencies already implemented," he said.
The group reiterated that trading remains in line with market expectations, with revenues and profits forecast to be higher in the second half due to seasonal demand, ongoing store openings and continued digital growth.
It said it planned to open 25 new Cake Box stores and 10 franchised Ambala outlets in the current financial year, adding that early second-half trading was strong, with total franchise sales up 13.7% in the first month after the period ended.
Chamdal said the company was confident in delivering further earnings growth despite consumer headwinds.
"Looking ahead, the momentum of the first half has continued into the second half of the year and we are on track to deliver full year performance in line with our expectations despite the consumer environment remaining challenging," he said.
At 0905 GMT, shares in Cake Box Holdings were down 1.43% at 207p.
Reporting by Josh White for Sharecast.com.
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