Krispy Kreme: Reports Strong Fourth Quarter 2022 Results

Charlotte / NC. (kkd) Krispy Kreme Doughnuts Inc., since May 2016 indirect member of Luxembourg’s JAB Holding Company, reported financial results for the fourth quarter and full year ended January 01, 2023. Net revenue in the quarter grew 9.2 percent, inclusive of a negative 3.7 percent impact from foreign currency exchange (FX) headwinds. Sales Per Hub grew 15.0 percent in the U.S. and Canada to USD 4.6 million and 7.7 percent in International to USD 9.8 million. Organic revenue in Q4 grew 12.5 percent driven by double digit organic growth in all three business segments. For FY-2022, net revenue grew 10.5 percent, inclusive of a negative 2.7 percent impact from FX headwinds, and organic revenue grew 12.1 percent.

Our efforts to improve performance through our network optimization and closing unprofitable shops led to expenses of USD 12.4 million, over 90 percent non cash, which contributed to a GAAP Net Loss of USD 1.0 million for the fourth quarter. The Company is already seeing improved performance from our Hubs without Spokes in the U.S.

Adjusted Ebitda grew 17 percent, or an even stronger 25 percent in constant currency, and Adjusted Ebitda margins expanded 90 basis points in the quarter compared to the same quarter a year ago, led by strong performance from the U.S. and Canada and Market Development segments and sequential improvement in our International segment. GAAP Diluted Loss Per Share for the quarter was USD 0.02 compared to income of USD 0.01 in the same quarter last year. Adjusted Diluted Earnings Per Share was USD 0.11 for the quarter, up 38 percent compared to the same quarter a year ago. Free cash flow in the fourth quarter was USD 32.4 million.

Commenting on the performance, CEO Mike Tattersfield stated, «We are pleased with the strong end to 2022, with notable progress on expanding our omni-channel model, furthering our global growth strategy and executing successfully on the initial phase of our hub optimization efforts. Our global fresh, premium Halloween and winter holiday specialty doughnuts resonated strongly with consumers, helping drive a record of more than 1.6 billion doughnuts sold in 2022. Our Ecommerce business also achieved impressive growth of 23 percent, marking the best quarter in this channel since the pandemic, led by growth in Insomnia Cookies and Krispy Kreme in the U.S.»

«Looking to 2023, we are well-positioned to deliver another year of terrific growth with a great start led by premium offerings for celebrations. Our performance this year will be led by continued expansion of our capital efficient omni-channel model as we aim to grow our fresh points of access by 10 percent to 15 percent in 2023. We are particularly excited for our global growth this year as we expect to open in five to seven new countries in 2023, including in France, as we continue on our journey to being the most loved sweet treat brand in the world.»

For additional information please read the Company’s PDF file below (129 KB):


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