Sales and underlying profit have risen by double digits in the latest financial year at Cake Box, driven by estate expansion and an e-commerce uptick.
The retail chain, which specialises in fresh cream celebration cakes that contain no egg, reported that group revenue for the 52 weeks ended 30 March 2025 had improved by 13% year on year to £42.8m.
Growth in underlying EBITDA and underlying profit before tax – calculated after adjustments for exceptional items – was even better at 17.1% and 17.4%, respectively, ending up at £8.73m and £7.08m. The exceptional items incurred during FY25 totalled £920k and included £700k of one-off costs relating to its £22m acquisition of Ambala Foods on 21 March 2025 with the remainder on historical website development costs.
“In the past year, we achieved significant operational growth and are pleased to report growing sales and underlying EBITDA ahead of market expectations,” commented Cake Box CEO Sukh Chamdal. “This success was due to strong franchise store performance, expansion of our store network, and the effectiveness of our multi-channel sales strategy.”
Cake Box continued progressing towards its medium-term target of 400 stores, adding 26 new sites in the 12-month period to bring its estate up to 251. This included entering new locations such as Hastings, Worthing, and Belfast – it has since opened its first international store in Paris. All new shops have the company’s refreshed branding, which is now featured at 78 sites as the roll out continues.
The company noted that there remains strong demand for new outlets both within its franchisee base and from new prospective franchisees. As of 30 March 2025, Cake Box has 109 franchisees of which 54 operate more than one store. It said it was working closely with external property developers to identify and secure high-potential locations, both to expand into new regions or strengthen its presence in existing areas.
An additional 19 corporate and three franchised stores have been added to the Cake Box estate following the Ambala acquisition. It said that operational efficiencies will be achieved through greater automation and improved utilisation at Ambala’s 42,000 sq ft production facility in Welwyn Garden City, and the merging of certain group functions will reduce overhead costs and enhance administrative efficiency.
Investments in digital marketing and website capabilities remain central to its growth strategy, it said, with online sales increasing by 19.0% year-on-year to £19.1m and online transactions now accounting for 23.5% of franchise store sales. Total visits to the Cake Box website reached five million in 2025, up 39.4% year-on-year with over 250k new customers. The Cake Club loyalty programme was launched in June 2024 and has since surpassed 100k members, while the marketing database doubled to 768k subscribers with the SMS database growing 78% to 348k.
Cake Box maintained a healthy pipeline of NPD too, including an exclusive partnership with Ferrero UK on the launch of a Nutella range. More recently, it has looked to capitalise on latest trends by unveiling a Dubai chocolate range.
Other investments made in the first half of FY25 included the £700k purchase of land adjacent to its Bradford depot, aimed at supporting growth in the north of England and Scotland, with a further £1m spent on other depot upgrades in Enfield and Coventry, and £1m on IT and e-commerce improvements. The board welcomed a trio of new non-executive directors: Malar Velaigam, who is also serving as chair of the Remuneration Committee; Catherine Nunn, assuming chair of the ESG Committee; and Andrew Boteler, taking up chair of the Audit Committee.
“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,” added Chamdal.
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