Tuesday, 24 October 2017

Costa coffee reported a fall in profits and slowdown in sales

Costa has reported a fall in profits and a slowdown in sales at its existing coffee shops in the last six months.

Pre-tax profits at Costa slid 10% to £59m, with the UK's biggest coffee chain saying it was partly due to more expensive coffee imports.

However, the firm's owner, Whitbread, saw group profits rise thanks to growth from its Premier Inn hotel business.

Whitbread boss Alison Brittain said consumer confidence had "softened" slightly on the High Street.

She also told the BBC that Costa had no plans to put up its coffee prices, despite seeing rising costs.
The fall in sterling means the coffee that Costa imports - which is priced in dollars - has become more expensive, Ms Brittain said.

"There's a lot of cost pressure in the business, whether that be wages, rates, rents, inflation, which we've offset with efficiency gains," she added.

BBC       News.