Costa Coffee UK has reported financial results for the year ended 31 December 2022, with turnover of £1.1bn, up 21% vs 2021.
Profit for the year was £243m, primarily driven by operating profit and the receipt of dividend income, compared to a loss of £38m in 2021.
The coffee chain, which recently appointed Nick Orrin as managing director for the UK & Ireland, further reported headwinds and inflationary pressures that impacted both profit delivery and margins during the period.
As a result, in the second half of the financial year, the company launched a restructuring programme to address the scale of overheads and invest for growth.
Total capex spend for the period was £70.5m.
Costa continues to establish and international omnichannel strategy with equity stores, its B2B platform, FMCG and ready-to-drink products, franchises, and wholesale operations.
The directors believe the omnichannel ‘Total Coffee Company’ proposition will continue to further build on its international foundations.
Earlier this year, Coca Cola president and CEO James Quincey said the company sees ‘tremendous’ growth opportunity for Costa and the wider coffee market, and has been held back due to the pandemic.
