Costa Coffee FY losses widen to £13m despite 1% revenue rise

Cost Coffee has seen its operating losses widen, from £6m to £13m, in the year ended 31 December 2024, despite seeing a 1% rise in revenues to £1.23bn during the same period. 

The coffee chain attributed its widening losses to softer footfall and the expansion of value-led competitors, which weighed on its performance. The company revealed in its filing at Companies House that inflationary pressures also continued to affect the cost of goods and operating expenses. 

In its risk review, the company highlighted brand perception as a principal uncertainty, warning that a sustained decline in consumer sentiment towards the brand could affect its ability to grow and generate appropriate returns.

Despite the operating loss, Costa posted a profit after tax of £67m, compared with a loss in the prior year. The result was driven largely by £85m in dividend income, up from £1m in 2023, alongside a £2m tax credit.

During the period, Costa continued to use revenue growth management strategies to support transactions, pricing and product mix, while running efficiency programmes to offset higher costs. 

The company also invested in opening new retail stores, refurbishing existing sites and developing its propositions.

Shareholders’ equity declined year-on-year despite the profit after tax, reflecting an £80m dividend payment to its parent company during the period.

Costa operates an international omni-channel model, spanning company-owned and franchised retail stores, away-from-home channels, and at-home and ready-to-drink products. The group is present in the five largest global coffee markets and accesses other territories through indirect route-to-market partners.