The UK-based coffee chain has bounced back from a £38m ($46.6m) loss in 2021, posting full-year profit of £243m ($297m) and 21% year-on-year sales growth in 2022
Costa Coffee posted full-year profit of £243m ($297m), compared to a £38m ($46.6m) loss in 2021 | Photo credit: Costa Coffee
Costa Coffee has cited improved post-pandemic trading conditions as a significant contributor to its sales and profit turnaround last year.
The UK-based coffee chain achieved 21% year-on-year sales growth in the 12 months ended 31 December 2022 to reach £1.1bn ($1.36bn).
Additionally, Costa Coffee posted operating profit of £8.26m ($10.1m) compared to a loss of £33.4m ($40.8m) in 2021, and a full-year profit of £243m ($297m), compared to a £38m ($46.6m) loss the year previously.
Despite improved post-pandemic trading conditions contributing to increased turnover, Costa Coffee said it continued to face inflationary headwinds last year which negatively impacted ‘both profit delivery and margins’.
“As a result of the economic environment and inflationary pressures, in the second half of the financial year the company launched a restructuring programme to address the scale of overheads and invest for growth,” Costa Coffee said in its accounts submission.
Founded in London in 1971, Costa Coffee currently operates nearly 2,700 stores in the UK and more than 1,400 outlets across 33 markets globally.
The coffee chain, which was acquired by US beverage giant Coca-Cola for $4.9bn in January 2019, expanded its global footprint in 2022 after entering the US, Oman, Morocco, Georgia and Pakistan.
Costa Coffee has continued international expansion this year with its first stores in Austria, Azerbaijan, Uzbekistan and Japan.