Cake Box EBITDA rises 17% to £8.73m

Cake Box has revealed that its underlying EBITDA increased 17.1% to £8.73m, up from £7.46m, for the year ended 30 March 2025.

Alongside this, the company saw a 19% growth in online sales to £19.1m, up from £16.1m in the previous year, following increased investment in digital marketing and e-commerce capabilities

Despite this, the company’s gross margin decreased marginally to 52.5%, down from 52.7%, as the group absorbed certain input price increases through the financial period.

In the period, Cake Box completed the acquisition of Ambala, a leading manufacturer and retailer of Asian sweets (Mithai) in the UK since 1965, currently operating 19 corporate stores and three franchised stores, for a total consideration of £22m.

The total number of Cake Box franchise stores across the UK increased to 251, from 225, with the brand entering new locations such as Belfast, Hastings and Worthing.

The company’s franchisee total turnover increased 9.5% to £86.3m, while it saw like-for-like sales growth of 3.0% in franchise stores, down from 4.4% the previous year.

CEO Sukh Chamdal said: “In the past year, we achieved significant operational growth and are pleased to report growing sales and underlying EBITDA ahead of market expectations. This success was due to strong franchise store performance, expansion of our store network, and the effectiveness of our multi-channel sales strategy. Notably, we celebrated the opening of our 250th store in Hastings, progressing toward our target of 400 locations.

“Our strategic acquisition of Ambala Foods in March 2025 enhances our product portfolio and diversifies revenue streams, focusing on celebratory and indulgent treats. Ambala’s rich heritage and popular products align seamlessly with our brand, creating opportunities for synergies, accelerated organic growth in new regions and reaching new customers.”

He added: “Looking ahead, we have entered the new financial year with positive trading momentum and are making good progress in integrating Ambala. We remain dedicated to growth, innovation, and solidifying our position as the UK’s leading retailer of fresh cream celebration cakes.”