Krispy Kreme: reports strong Q4 and Full Year 2021 results

Charlotte / NC. (kkd) Krispy Kreme Doughnuts Inc., since May 2016 indirect controlled member of Luxembourg’s JAB Holding Company, reported strong financial results for the fourth quarter and full year ended January 02, 2022 with fourth quarter net revenue growing 13.8 percent year-over-year, or 21.5 percent adjusted for the extra 53rd week in 2020. For the fourth quarter, organic revenue grew 13.9 percent, including the now fully-exited legacy wholesale business, or 19.6 percent excluding this business, year-over-year. For the full year, net revenue grew 23.4 percent, while organic revenue grew 12.5 percent, or 21.4 percent excluding the legacy wholesale business.

GAAP Net Income was USD 4.3 million compared to a loss of USD 24.8 million a year ago while GAAP diluted Earnings Per Share for the quarter was USD 0.01 compared to a loss of USD 0.21 last year. Adjusted diluted Earnings Per Share was USD 0.08 for the quarter, compared to USD 0.10 last year due to share dilution from the IPO. Adjusted Ebitda grew 14.4 percent in the quarter led by a 290 basis point improvement to U.S. and Canada margins, driven by the strength and efficiency of the Company’s fresh doughnut hub and spoke operating model. The economies of scale from adding over 2,000 Global Points of Access in the last 12 months, as well as successful price increases in September and November, more than offset wage and commodity inflation.

Growth was driven by the performance and expansion of Krispy Kreme’s capital-efficient hub and spoke operating model, and strong performances across all three business segments. Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased 25 percent year-over-year, providing customers access to Krispy Kreme in more than 10,000 locations around the world. International Sales per Hub grew 42 percent year-over-year, while U.S. and Canada Sales per Hub grew 14 percent.

Commenting on the performance, CEO Mike Tattersfield stated, «Our fourth quarter and full year results demonstrate the benefits of our omni-channel model and global expansion strategy, which allow us to meet consumer demand with premium, fresh doughnuts. Our global Halloween campaign and seasonal limited time offerings resonated strongly with consumers which really maximizes the gifting and sharing occasions of the brand.»

Mike continued, «Looking ahead, we are well-positioned to deliver another year of double-digit revenue growth in 2022. Our performance will be led by the expansion of our omni-channel model, as we continue to significantly expand our points of access. We will continue our transformation to the more profitable and capital efficient hub and spoke model in the U.S. and Canada, which will allow us to grow our most loved sweet treat brand. We are incredibly excited for the opportunity to open in at least three new countries in 2022 and expand our global footprint for years to come.»

For additional information please read the Company’s PDF file below (117 KB):

20220222-KRISPYKREME-Q4-2021
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