Starbucks UK’s profits leap forwards

Starbucks UK has seen pre-tax profits rise to £34.2m for the year to 27 September
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Starbucks UK has seen year-on-year pre-tax profits jump £32.2 million to reach £34.2m in the year to 27 September.

According to the US-owned coffee chain’s latest set of results, this was the largest ever pre-tax profit since Starbucks opened in the UK in 1998. By comparison, in 2014 profit before tax was just under £2m.

Like-for-like sales also grew by 3.8%, with Starbucks attributing the progress to a “turnaround plan”, which included reshaping the UK store portfolio.

Altogether, 17 coffee shops closed in 2015, while the ownership of 74 stores was transferred to franchises.

The number of licensed outlets increased by 14 and franchised stores by 94.

The company, which in 2012 came under fire for how little tax it had paid, also spent more than £8.1m on corporation tax over the past 12 months.

“Before- and after-tax profits are both up by more than £30m as we have invested in the store experience while managing our costs,” Kris Engskov, Starbucks EMEA president said.

“As a result our corporation tax payments also increased. The strategy to offer great customer service, provide new and exciting experiences for customers in our stores, and improve our operating model is delivering.”

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