Cafe chain Patisserie Valerie eyes new plant plans as profits soar
The owner of cafe chain Patisserie Valerie has reported strong annual sales and profit growth as tight cost controls helped to overcome soaring inflation.
Patisserie Holdings notes revenues rose 9.7 per cent to £114.2 million in the year to 30 September and pre-tax profit rose 17.1 per cent to £20.2 million.
Online sales rose 26 per cent to £4.8 million as it reaped the benefits from customer engagement via social media platforms.
The group - which has a number of cafes in Scotland, including four in Glasgow - said inflation has hit wages and ingredient costs in the year as a result of the Brexit hit pound, but adds these pressures are now “easing”.
Chairman Luke Johnson said: “Our indulgent, affordable treats remain attractive to customers, and our flexible business model has enabled us to mitigate inflationary cost pressures.”
Patisserie Holdings is currently reviewing options for an additional production facility in the Manchester area with capacity to serve 70 stores, as well as baking goods within all of its stores.
“Both of these initiatives will provide additional capacity to the group as well as releasing savings and efficiency and improving product quality,” the company said.
Stores are currently serviced from a main bakery in Birmingham and seven satellite bakeries across the UK.
Patisserie Holdings, which also operates Druckers, Baker & Spice and Philpotts, opened 20 new stores in the year, including in Scotland and Ireland, taking the store estate to 199 stores.
The group is targeting 20 new stores for 2018.
Patisserie Holdings secured a supply agreement with Sainsbury's during the year which will see it operate from 18 of the supermarket's counters by the year end.
Mr Johnson said: “We have delivered another year of excellent financial results, achieving our targets in a challenging environment.
“We opened 20 new stores many of which are performing ahead of expectations, and the performance of our new bakeries in the Republic of Ireland is encouraging.”