Krispy Kreme: Reports Second Quarter 2022 Results

Charlotte / NC. (kkd) Krispy Kreme Doughnuts Inc., since May 2016 indirect controlled member of Luxembourg’s JAB Holding Company, reported financial results for the second quarter ended July 03, 2022 with net revenue growing 7.5 percent year-over-year to USD 375.2 million, or 50.0 percent on a two-year stack basis, while organic revenue grew 8.9 percent, or 31.4 percent on a two-year stack basis. Sales per Hub in the U.S. and Canada increased by 22.2 percent year-over-year to USD 4.4 million while International Sales per Hub grew 22.5 percent to USD 9.8 million, driven by a 19 percent increase in Global Points of Access and a 9 percent increase in U.S. and Canada weekly sales per Delivered Fresh Daily (DFD) Door. Foreign currency translation resulted in a negative 2.6 percent impact on net revenue growth during the second quarter due to the strength of the U.S. dollar.

GAAP Net Loss for the quarter was USD 2.4 million, a significant improvement compared to a loss of USD 15.0 million a year ago while GAAP diluted Loss Per Share for the quarter was USD 0.02 compared to a loss of USD 0.13 last year. Adjusted Diluted EPS was USD 0.08 for the quarter, compared to USD 0.13 last year due in part to share dilution from an increased share count following the IPO. Adjusted Ebitda in the second quarter was USD 47.4 million, which included an approximately USD 2.7 million negative impact from the strong U.S. dollar.

Organic growth was driven by the performance and expansion of Krispy Kreme’s omni-channel model, and strong performances in Australia, Mexico, the Market Development segment, hubs with spokes in the U.S. and Insomnia Cookies. Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by 382 during the quarter, providing consumers access to Krispy Kreme in more than 11,400 locations around the world.

Commenting on the Company’s performance, President and CEO Mike Tattersfield stated, «Our results in the second quarter continue to demonstrate the benefits of our omni-channel model and global expansion strategy with strong organic growth. In the second quarter consumers faced unique economic pressures, which is why we invested in our customers through Acts of Joy such as Beat the Pump dozen pricing that matched a gallon of gas and other promotions to drive brand love. After the end of the second quarter, we took successful pricing actions in the U.S. and U.K. markets and we have seen a significant deceleration in key commodity costs for 2023 in recent weeks.»

«We are very well-positioned for growth over the next few years driven by the expansion of our omni-channel model as we significantly expand our points of access primarily through low capital DFD Doors and continue our transformation to the more profitable and capital efficient Hub and Spoke model in the U.S. Additionally, we have strong interest from global partners to bring Krispy Kreme to new geographies.»

For additional information please read the Company’s PDF file below (122 KB):

20220817-KRISPYKREME-Q2-2022.

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