Pretax losses at the Irish arm of doughnut maker Krispy Kreme more than doubled to €3.07 million last year as a challenging economic environment affected store footfall alongside rising cost pressures.

Krispy Kreme has expanded rapidly over the eight years since it opened its first outlet in Blanchardstown to great fanfare and lengthy queues. It operates 14 stores and a growing number of “access points” at retail partners.

Sales dipped for the second year in a row to €13.47 million, according to accounts just filed for Krispy Kreme Ireland Ltd, from €14.1 million in 2024. After several years of rapid growth as the US group expanded its presence in Ireland, sales are 10 per cent off their 2023 peak of €14.94 million.

The pretax loss of €3.07 million for 2025 is well ahead of the €1.3 million loss recorded the previous year.

The directors said the company “has operated in a challenging economic market environment with macroeconomic factors affecting footfall in the shops and cost pressure in all input cost lines”.

They cited high inflation impacting consumer disposable income, input costs and lack of labour and goods in the market as factors impacting operations.

A non-cash impairment cost of €692,000 on property, plant and equipment exacerbated losses. Directors said this related to the estimated future trading impact of the challenging macroeconomic environment.

Company directors said they expected 2026 “to present a challenging commercial environment, particularly as the ongoing macroeconomic environment creates uncertainty for consumers’ future behaviour but remain confident that the company is well positioned to continue to be successful by providing an excellent product and service experience”.

For last year, the business recorded a loss before interest, tax, depreciation and amortisation of €211,000. At the operating level, losses came to €2.72 million, rising to €3.07 million once finance charges are taken into account.

The loss takes account of non-cash depreciation costs of €1.81 million and operating lease costs of €1.1 million.

Numbers employed in the business rose slightly last year to 176 from 167 and staff costs came to €5.45 million, up from €4.95 million in 2024. Directors’ pay totalled €134,000.

At December 28th last, Krispy Kreme’s accumulated losses in the Irish business stood at €2.23 million while cash funds fell to €684,000 from €1.16 million at the same time the previous year.