Costa Coffee deepens losses as buyer search continues

High street coffee chain Costs Coffee’s losses grew to nearly £13.5m in the 12 months to 31 December 2024.

This represents a 132% increase on 2023’s loss of £5.8m, amid owner Coca-Cola’s attempts to sell the business it acquired less than seven years ago from Whitbread.

In the company’s latest annual report, global CEO Philippe Schaillee stated the loss was driven by “challenging conditions with soft footfall and growth of value-led competitors”.

However, Costa did make a £67m profit after tax due to an £85m dividend income receipt and a £2m tax credit.

2024’s full year revenues rose to £1.23b, up 1% or £9m from 2023’s £1.22b.

Schaillee wrote: “Costa utilised revenue growth management strategies to drive growth in transactions, pricing and mix along with efficiency programmes to offset the impact of inflationary pressures on the cost of goods and operating expenses.

“The company continued to invest in new retail stores, renewing existing sites and proposition development.”

Coca-Cola first considered selling Costa in August 2025, after only having bought the brand in 2019 for £3.9b.

The sale could lead to a potential multibillion-pound loss for Coca-Cola, according to analysts, with sources suggesting the coffee chain is now worth just £2b.

At the time of the acquisition, which marked the soft drinks firm’s fourth bet on coffee, Coca-Cola said it would enable the business to become a “global coffee platform”.

For the latest proposed sale, it is believed fewer bids for the business have been received than expected.

Wagamama owner asset management firm Apollo Global Management pulled out of the process, despite being initially interested in the sale.

TDR Capital, which has a controlling stake in the UK arm of fast-growing fried chicken chain Popeyes, is understood to still be in the running.

Private equity firm Bain Capital, which has backed Gail’s and PizzaExpress, also put in a first round bid to buy Costa through its Special Situations unit, according to the Financial Times.

The group was founded by Italian brothers Sergio and Bruno Costa in 1971. It was sold to Whitbread for £19m in 1995, when it had less than 40 stores.

The chain is now a ubiquitous presence on the UK high street and operates around 2,600 cafés in the UK and Northern Ireland and more than 3,900 sites worldwide.