Positive sales growth for Costa

26 February, 2013

Costa Coffee has highlighted a 22.4% rise in total system sales to £962m during the last year.

The BB75 retailer, part of the Whitbread Group, revealed the news this morning as part of a trading update for the 50 weeks to 14 February, with a 6.6% increase in like-for-like sales (LFLs) during the same period.

Franchise sales also saw a 18.5% rise to £383.3m in the 50-week period, while UK retail system sales grew by 20.2% to £525.2m.

During its fourth quarter - the 11 weeks to 14 February - Costa experienced a 32.2% rise in total sales and 5.5% lift in LFLs.

Andy Harrison, chief executive of Whitbread, said: “For the financial year to date, Whitbread has again delivered outstanding organic growth in a flat consumer market, growing total sales by 14.8%. Our strong brands continue to win market share, supported by our highest-ever guest satisfaction scores and rapid expansion of our network. Good LFL growth of 3.7% demonstrates the consumer appeal of our brands and also enables us to reinvest in our people and facilities and to grow our estate. We remain on track to deliver full-year results in line with expectations.”

He added that the company sees no change to the market conditions and expects a more competitive environment, and the Whitbread Group is on track to achieve its 2016 growth milestones.

The firm said it was on track to open 320 net new international Costa Coffee stores and 1,300 of its Costa Express units in the full year. It plans to open a similar number of coffee shop outlets and more than 500 Costa Express units in the following year worldwide.

Costa said it now operates 1,241 UK stores, as of 14 February, which is 150 more stores within its estate in comparison to 1 March 2012. Under the coffee shop brand, there are now 2,516 international shops operating across Europe, the Middle East and Asia.

The Whitbread Group reported total sales growth of 16.9% in Q4, while it said LFLs were slightly suppressed at a growth rate of 2.7%, which the group said was due to adverse weather conditions in January, particularly affecting its restaurants business.





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