Krispy Kreme: Reports Third 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 third quarter ended October 02, 2022 with net revenue growing 10.1 percent year-over-year to USD 377.5 million, or 13.4 percent in constant currency, while organic revenue grew 12.0 percent. Foreign currency translation resulted in a negative 3.3 percent impact on net revenue growth during the third quarter due to the strength of the U.S. dollar. Sales per Hub in the U.S. and Canada increased by 18.4 percent year-over-year to USD 4.5 million while International Sales per Hub grew 16.3 percent to USD 10.0 million.

Organic growth was driven by the solid performance and expansion of Krispy Kreme’s omni-channel model, with a 17 percent increase in Global Points of Access and strong organic revenue growth in all three business segments in our seasonally low quarter. Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by 294 during the quarter, providing consumers access to Krispy Kreme in more than 11,700 locations around the world.

GAAP Net Loss for the quarter was USD 11.8 million with Adjusted Net Income of USD 5.9 million. GAAP Loss per Share for the quarter was (USD 0.08) while Adjusted Diluted EPS was USD 0.03 for the quarter. Adjusted EBITDA in the third quarter was USD 38.5 million, which included approximately USD 3.1 million negative impact from the strong U.S. dollar.

Commenting on the Company’s performance, President and CEO Mike Tattersfield stated, «We were pleased with our strong organic revenue growth in the third quarter, led by an acceleration in growth in the U.S. and Canada and Market Development. Margins improved significantly in the final period of the quarter as we successfully implemented price increases in the U.S. coupled with decreased promotional activity after Labor Day. Strong momentum continues into the fourth quarter enhanced by further recent pricing actions in the U.S. and U.K. and a robust global Halloween performance.»

Mike continued, «Our international expansion strategy is progressing at a healthy pace. Just recently we opened in Jordan and announced a joint venture to enter into France in 2023. We are excited to also announce a new development agreement to open in Jamaica next year, bringing our total development deals signed in 2022 to 7 international countries, representing over 5,000 new potential points of access.»

For additional information please read the Company’s PDF file below (120 KB):

20221115-KRISPYKREME-Q3-2022
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