Krispy Kreme first quarter revenue growth aided by omni-channel model

Krispy Kreme’s omni-channel model allows it to reach more consumers by creating points of access across multiple channels | Photo credit: Darrien Statton

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Krispy Kreme has reported strong financial results for the first quarter of 2022 with net revenue growing 15.8% year-over-year to $372.5m while organic revenue grew 15% to $370.1m. Net income for the quarter was $6.5m, compared to a net loss of $0.4m in 2021.

The North Carolina-based company said that growth was driven by the performance and expansion of Krispy Kreme’s omni-channel model, which allows it to reach more consumers by creating points of access across multiple channels, including its shops, e-commerce, delivery, and retail.

Global Points of Access, which reflect all locations where fresh doughnuts and cookies can be purchased, increased by 600 during the quarter, providing customers access to Krispy Kreme in more than 11,000 locations around the world.

Net revenue grew 13.8% to $253.1m in the US and Canada, whilst net revenue grew 31.1% to $87.2m internationally, with organic growth of 35.5%. In the international segment, points of access increased by 312 to 3,203.

Fresh shops remain the dominant outlet option, but Krispy Kreme has witnessed growth in the number of hot light theatre shops and individual cookie shops compared to the same period last year.

Regarding market development, the donut and coffee business said that organic revenue growth rose 9.5%, driven by a strong performance in the equity-owned Japan market where it has implementing its omnichannel model with the expansion of eCommerce and the launch of delivered fresh daily.

“We continue to be well-positioned to deliver another year of double-digit revenue growth in 2022 despite macro-challenges. Our performance will continue to be driven by the expansion of our omni-channel model as we significantly expand our points of access and continue our transformation to the more profitable and capital efficient Hub and Spoke model in the US and Canada. In addition to Switzerland and Chile, we are excited to announce plans to open in Jordan and Costa Rica this year with several other new countries in the pipeline as we work to expand our global footprint,” said Mike Tattersfield, CEO, Krispy Kreme.

Krispy Kreme operates in over 30 countries. In December, JAB Holdings increased its stake in the company to nearly 45%, which it took public in 2021 after five years of private ownership.