Caffe Nero profits perk up

14 September 2004
Caffe Nero profits perk up

Profits shot up at coffee bar chain Caffe Nero during the year to 31 May as increased sales from new openings fed straight through to its bottom line.

Turnover was up by 28% to £50.5m as the firm opened 43 new outlets, taking its total to 162 stores in 66 UK towns and cities.

Profits from its stores, before head office overheads, increased by 46% to £10.6m.

Pre-tax profits (before amortisation and exceptionals) were up by 127% to £2.4m.

Chairman Gerry Ford said the leap in profits reflected the fact that "having readed a threshold size of stores and infrastructure, a large portion of each new store's profit now flows down to the group's profit line."

He added that the company was now self-financing: it could fund its new openings from the cash being generated by its stores.

Since the year-end, Caffe Nero has opened 21 new outlets, taking its total to 183.

It expects openings to continue at the same rate for the rest of the year - at about one new store every 10 days.

Caffe Nero added that it had made a strong start to the current financial year, with sales up by 40% and like-for-like sales up by 6.5% in the first three months.

It said the coffee-bar market was thriving and that suitable new premises were now available at "reasonable" prices.

Buy this week's Caterer magazine for more industry news and analysis

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking