Costa Coffee has reported a pre-tax loss of £9.6 million ($12.5 million) for the last year, a significant decline from profits that plummeted by over £250 million ($326 million). The company attributes this downturn to rising inflationary pressures, particularly in energy and payroll costs.
In a filing with Companies House, Costa Coffee indicated that impairment charges related to its Costa Express and Costa International subsidiaries also played a major role in the financial setback. This loss follows a period of profitability in 2022, during which the company earned £245.9 million ($320.7 million).
Despite posting a total net loss of £14 million ($18 million), the Coca-Cola-owned coffee chain achieved a 9% year-on-year increase in group sales for the 12 months ending December 31, 2023, reaching £1.2 billion ($1.6 billion).
The UK market, where Costa operates more than 2,600 outlets, accounted for 96% of total sales, generating £1.17 billion ($1.5 billion) — an 8% increase compared to the previous year. Meanwhile, international sales saw a remarkable growth of 71%, amounting to £45.8 million ($59.7 million).
However, Costa Coffee’s revenues remain below pre-COVID levels, having reached £1.3 billion ($1.75 billion) in 2019.
Founded in 1971, Costa Coffee operates over 4,000 stores and 15,800 self-serve coffee machines across 50 markets worldwide. The chain was acquired by Coca-Cola for $4.9 billion in January 2019 and is currently led by CEO Philippe Schaillee.
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