Fri 18th Oct 2024 - Costa Coffee reports turnover increases to £1.2bn but posts £9.6m pre-tax loss Costa Coffee reports turnover increases to £1.2bn but posts £9.6m pre-tax loss: Costa Coffee, the Coca-Cola Company-owned brand, has reported turnover increased 9% to £1,222,856,000 for the year ending 31 December 2023 compared with £1,117,450,000 the previous year. Of that figure, £1,187,893,000 came from sale of goods (2022: £1,084,382,000) and £34,963,000 from franchise fees (2022: £33,068,000). Geographically, £1,177,032,000 arose from the UK (2022: £1,090,643,000) and £45,824,000 from the rest of the world (2022: £26,807,000). However, revenue was still below the pre-covid figure of £1,344,138,000 reported in 2019. Costa posted a pre-tax loss of £9,632,000 compared with a profit of £245,950,000 the previous year. During the period, the company incurred impairment charge for property, plant and equipment of £1,822,000 (2022: net impairment reversal of £4,764,000), an impairment charge for intangible assets of £5,000 (2022: impairment reversal of £130,000), impairment charge for right of use assets of £1,027,000 (2022: net impairment reversal of £9,736,000) and an impairment charge for investments in subsidiaries of £19,127,000 (2022: net impairment reversal of £3,927,000). In March 2024, the company received dividends of £20m and £65m from its wholly owned subsidiaries, Costa International and Costa Express, respectively. In April 2024, Costa Coffee paid a dividend of £80m to its parent company, European Refreshments Unlimited Company. In their report accompanying the accounts, the directors stated: “Costa utilised revenue growth management strategies to drive growth in transactions, pricing and mix along with efficiency programmes to offset the impact of inflationary pressures on the cost of goods and operating expenses. The company continued to invest in new retail stores, renewing existing sites and proposition development. The growth in revenue generated incremental gross margins. However, inflationary pressures on the cost of goods, including energy and payroll, and the impairment of the company's investments in two of its subsidiaries resulted in an operating loss of the year. The company made a loss of tax of £14m driven by the aforementioned operating loss, net finance costs of £5m (2022: £7m), the receipt of dividend income of £1m (2022: £245m) and a tax charge of £4m (2022: £3m). Shareholders’ equity has decreased year on year due to the aforementioned loss after tax and dividends paid to the company's parent of £85m (2022: £95m).” The company employs around 17,800 staff. Costa Coffee features in the Propel Turnover & Profits Blue Book, the latest edition of which was made available exclusively to Premium Club members today (Friday, 18 October) and features 994 companies. Costa’s turnover of £1,222,856,000 is the 11th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.