Caffè Nero reports £150m in UK sales
For the first half of its current financial year (June to November 2022), coffee chain Caffè Nero reported sales in the UK of £150m, averaging 104% of pre-pandemic levels and an increase of 17% on 2021.
The group also reported that sales during December 2022 reached 110% of pre-pandemic levels, a 9.5% like-for-like increase compared to December 2021. Its UK business achieved record weekly sales during the week of 5 December of £7.9m and served 7.8 million UK customers during the month.
Despite costs challenges, the brand also opened seven new stores in the UK during the period. Its delivery business benefited from new partnerships with Deliveroo and Just Eat as well as an existing agreement with Uber Eats to generate £3.5m of revenue. Likewise, its coffee at home business for the same period achieved sales of £1.5m.
At a group level, Caffe Nero had 1,023 stores across 10 countries at the end of the first half of the financial year with sales of £231m, an increase of 20% like for like against the previous year.
Caffè Nero group chief executive Gerry Ford said: "We've seen a very encouraging first half of our financial year. Despite significant inflationary pressures which have continued to mount since June, we have demonstrated strong cost control and delivered solid sales growth. We traded at 110% of pre-pandemic sales in December and had record weekly sales. That is a testament to the hard work and outstanding service from our store teams as well as a very well received Christmas menu with our customers. We expect to see sales continue to improve further over the coming weeks and months."
Caffè Nero also reported its annual results for the last financial year ending May 2022. UK sales increased from £153.3m the prior year to £254m, an increase of 65%, with UK earnings before interest, tax, depreciation and amortisation (EBITDA) at £46.7m, 19% above the previous year.
At group level, worldwide group sales increased by 70% to £389m, with group EBITDA at £57.7m, 50% above the previous year. During the period, the group opened 22 new stores across the world.
Ford added: "FY22 was a period of recovery for the world and for our business. The figures from our FY22 accounts show the strong rebound our business made as the Covid restrictions were gradually lifted. Our stores saw a significant uplift in sales reflecting pent-up demand from customers to eat and drink with us. Sales grew as the year progressed, which shows our brand strength and the desire of customers to come back in once health restrictions were lifted. The financial year also saw the continued expansion of our delivery and coffee at home channels, which remains a focus for us. All in all I'm very pleased with the progress we made."