This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-41732349
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Costa coffee chain's profits go cold | Costa coffee chain's profits go cold |
| (about 4 hours later) | |
| Costa has reported a fall in profits and a slowdown in sales at its existing coffee shops in the last six months. | 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. | 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. | 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. | 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. | 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. | 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. | "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. |
| Coffee's 'third wave' | Coffee's 'third wave' |
| The company also pointed to investment in stores and the closure of its French business for the decline in statutory profit. | The company also pointed to investment in stores and the closure of its French business for the decline in statutory profit. |
| Costa's revenues in the UK increased by 8% in the six months to 31 August, but that was largely driven by the addition of 108 new stores. | Costa's revenues in the UK increased by 8% in the six months to 31 August, but that was largely driven by the addition of 108 new stores. |
| Its like-for-like sales - which measures growth among existing outlets - increased by only 0.6%, down from 2.3% growth in the same period last year. | Its like-for-like sales - which measures growth among existing outlets - increased by only 0.6%, down from 2.3% growth in the same period last year. |
| The chain hopes that what it calls the "third wave of coffee" will help to boost sales. | The chain hopes that what it calls the "third wave of coffee" will help to boost sales. |
| It described this as a period in which UK "consumers' preferences for coffee become more sophisticated and are willing to spend more per cup". | It described this as a period in which UK "consumers' preferences for coffee become more sophisticated and are willing to spend more per cup". |
| The Premier Inn hotel business fared better, with profit rising by 27% to £295m as it added more than 2,000 new rooms. | The Premier Inn hotel business fared better, with profit rising by 27% to £295m as it added more than 2,000 new rooms. |
| Ms Brittain said an influx of tourists coming to the UK's big cities - attracted by the weaker pound - had "left the hotel market quite buoyant". | Ms Brittain said an influx of tourists coming to the UK's big cities - attracted by the weaker pound - had "left the hotel market quite buoyant". |
| Premier Inn is looking at international expansion, particularly in Germany where it plans to open eight new hotels. | Premier Inn is looking at international expansion, particularly in Germany where it plans to open eight new hotels. |
| Whitbread's group profits in the period increased by 20% to £316m on the back of 7% sales growth to £1.7bn. | Whitbread's group profits in the period increased by 20% to £316m on the back of 7% sales growth to £1.7bn. |
| The company's shares fell more than 5% and are flat for the year. |