April 08, 2024

Cake Box on track to deliver higher-than-expected profits after surge in demand

Cake Box has reported that a surge in sales and steady costs have put it on track to deliver higher-than-expected profits for the year. Shares in the company rose in early trading as a result. The cream cake retailer said it has also benefited from new stores opening and positive demand for click-and-collect in recent months. Sukh Chamdal, co-founder and chief-executive officer, said: "We are delighted to have delivered a year of solid growth in all our key performance areas and full-year profits slightly above expectations despite the backdrop of uncertain macroeconomic conditions." Cake Box told shareholders it expects to report a 9% jump in revenues for the year to March 31 after sales momentum continued over the second half of the financial year. The retailer said it has also "benefited from the continued stabilisation in the cost of raw materials during the year and seen further efficiency benefits from previous investment in the business". As a result of improved costs and higher revenues, it expects profits to come in slightly ahead of market expectations. Cake Box said it has also witnessed strong demand for new stores from franchisees and has identified target areas for new openings as part of long-term efforts to grow to 400 stores. The group opened 20 stores last year, growing to an estate of 225 locations. Mr Chamdal added: "We are very pleased with the feedback from the launch of the new Cake Box brand identity from our customers, which will continue to bring new customers to experience our wonderful products." "We expect to report an increase in all key financial metrics, an uptick in sales of products online including our 'click and collect' offer as well as in-store sales and an increased number of franchise stores. I am confident that with our strengthened senior management team and investment in our operations and processes, as well as our dedicated and determined franchisees, we will continue to grow the Cake Box customer base and brand." Shares in the company had climbed by 4.4% to 168p on Monday morning.

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Neogen, Maxeon Solar Technologies And 3 Stocks To Watch Heading Into Tuesday

With U.S. stock futures trading slightly higher this morning on Tuesday, some of the stocks that may grab investor focus today are as follows: Wall Street expects Neogen Corporation (NASDAQ: NEOG) to report quarterly earnings at 14 cents per share on revenue of $230.01 million before the opening bell, according to data from Benzinga Pro. Neogen shares gained 0.2% to close at $14.38 on Monday. Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN) said it sees preliminary fourth-quarter revenue of $229 million versus market estimates of $235.959 million. Maxeon Solar shares fell 6.6% to $2.55 in ...Full story available on Benzinga.com