Doughnut retailer Krispy Kreme’s UK division has fallen into the red after the pandemic hit sales, but is to continue with expansion plans.
The brand, which now has 116 UK sites, has closed nine since the pandemic broke out.
The firm recorded a pre-tax loss of £3.5 million in the 53 weeks to January 3, down from a profit of £8.5 million a year earlier. Revenues slumped by 23.5% to just over £71.9 million.
The company said the loss was due in part to the closure of its manufacturing and retail operations for over a month when the pandemic first hit. Plants reopened in late April after establishing Covid-secure measures.
But bosses said they still plan to pursue UK expansion, and highlighted growth in the brand's online orders and delivery demand.
Directors wrote that due to a "combination of strategic decisions" and taking up furlough and other Government support schemes, the firm "exited 2020 strongly and has begun 2021 with the implementation of investment and growth plans". They said the company has demonstrated the "ability to remain both highly profitable and cash generative".
The brand, which was first founded in 1937 and just launched two new doughnut flavours in Britain, said that it plans to open shops in “quality, high profile locations” in 2021, and expand further online.