Starbucks reports loss for last financial year

01 July, 2013

Starbucks UK has posted a £30.4m loss after tax, for the full year to 30 September 2012, in its latest accounts filed at Companies House.

The coffee chain had previous filed a £32.8m loss in 2011. Total sales increased by 3.9% to £413m, compared to the same period in 2011.

Despite this, Starbucks said like-for-like sales had continued to grow over the period, in part down to the introduction of its new standard coffee in its most popular espresso-based drinks. It also relaunched its new loyalty card programme, and continued to invest in store refurbishments across the estate.

It said the UK still remain a challenging trading environment, but that it would “continue to reshape the business to drive it towards the profitability over the long term”.

The company added that it planned to grow revenue and profits in existing stores and other channels, “to add new stores through a disciplined approach, and to introduce relevant new products”. It also plans to create 5,000 new jobs over the next five years.

Licensed store numbers grew by 17 to 145, and drive-thru outlets by 11, with the chain stating it expected growth in both these formats to continue in 2013.

The total number of company owned stores reduced by 14 to 593, “as we continue to rebalance the store portfolio towards more profitable locations”, it said.

Following the media coverage of the chain, and its lack of tax contributions, the company confirmed its intention to start paying tax in the UK. “In December 2012, despite the lack of taxable income, the company made a public commitment to pay corporation tax by not deducting certain related party expenditure for tax purposes in our 2012 tax computation,” said the firm.





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