Krispy Kreme revenues hit $442.7m in Q1
International adjusted EBITDA grew 8.2% to $20.5m (£16.3m) with adjusted EBITDA margin declining approximately 50 basis points, as lower volumes in the UK continued to more than offset strength in Canada and Mexico
Krispy Kreme’s revenues increased 5.7% to $442.7m (£353.2m) during the first quarter ended 31 March 2024.
Organic revenue for the group grew 6.7% to $440.9m (£351.8m), fueled by a 19.4% increase in points of access and the success of global brand activations including Valentine’s Day and St. Patrick’s Day doughnuts among others.
Digital sales as a percent of retail sales increased 340 basis points to 23% of sales, due to a focus on owned channel improvements and increasing product availability through third parties.
Adjusted EBITDA in the quarter grew 5.9% to $58.2m (£46.4m).
In the US segment, net revenue grew $14.6m (£11.6m), or 5.2%, with organic revenue growth of 7.4%. The company said that the gap between organic revenue growth and net revenue growth was primarily attributable to the exit of the Branded Sweet Treats business.
U.S. Adjusted EBITDA increased 10.6% to $42.6m (£33.9m).
The international segment net revenue grew $12.8m (£10.2m), or 11.4%, while international organic revenue grew 9.8%.
International adjusted EBITDA grew 8.2% to $20.5m (£16.3m) with adjusted EBITDA margin declining approximately 50 basis points, as lower volumes in the UK continued to more than offset strength in Canada and Mexico.
As a result of the trading, the company has reaffirmed the guidance for the full-year, which hopes to achieve a net revenue growth between 5% and 7% and an adjusted EBITDA growth between 8% and 11%.
Josh Charlesworth, CEO, said: “First-quarter results exceeded our expectations, driven by increased digital sales and strong consumer demand, highlighted by a record setting Valentine’s Day with specialty doughnuts available in 33 countries around the world. Our strategy of making fresh Krispy Kreme doughnuts more available globally is providing impressive results. We are modernising how we make and move doughnuts to ensure high quality, profitable growth.
“Our Delivered Fresh Daily expansion is accelerating into more grocers, convenience stores and quick service restaurants. We’re excited about our recently announced agreement with McDonald’s, which is expected to add more than 12,000 new points of access in the US by the end of 2026. We’ll support much of this nationwide rollout using existing capacity, while adding distribution with other major customers as we grow.”