Costa’s main coffee shop arm returned to an operating profit of £20m in the year to 31 December 2025 after losses of £13.5m in 2024 and £5.8m the year before, according to accounts filed at Companies House cited by theguardian.com. Revenues for Costa Ltd rose 5% to nearly £1.3bn, contrasting with a 1% growth rate in 2024 as the 2,700-outlet chain experienced its strongest visit growth in a decade.
Financial Rebound and Outlet Expansion at Costa Ltd
The 5% revenue increase to nearly £1.3bn drove the £20m operating profit, marking a recovery from consecutive annual losses. Chief executive Philippe Schaillee noted that the chain achieved its strongest visitor growth in a decade. Alongside the financial turnaround, the company expanded its footprint by opening a net 50 new outlets across the UK last year—representing its first net increase in several years. The business plans to open another 50 UK locations this year, focusing on drive-throughs and high street sites, while remodeling approximately 250 stores annually after updating more than 1,200 of its 1,700 company-owned cafes.
Younger customers drive demand for iced and decaf beverages
Changing consumer habits are reshaping sales patterns across the chain’s 2,700 UK and Ireland stores and 4,000 global locations. Demand from younger customers for decaffeinated beverages, iced herbal teas, and low-calorie iced options like the Velvetino is driving afternoon and evening traffic amid shifting attitudes toward caffeine consumption. At the same time, the company faces intense competition on classic coffees from rivals including Greggs, Gail’s, Caffè Nero, and various independent operators. Despite this competitive pressure, the chain states it is now the largest seller of matcha via cafes in the UK.
Technological Upgrades and Corporate Infrastructure Investments
Digital self-order kiosks have been installed in 200 UK outlets as part of the broader store remodeling initiative. Beyond traditional high street locations, the company is expanding sales of its Podio office coffee machines, launched in May with the aim of serving as an office-based barista. Schaillee noted that Costa ranks as the UK’s third-largest brand in home coffee machines, identifying substantial growth potential in that sector. The business demonstrated operational confidence by constructing a new headquarters in St Albans, Hertfordshire, designed to accommodate 300 workers ahead of its January opening.
Coca-Cola retains ownership after abandoning planned sale
The operational update follows a decision by owner Coca-Cola in February to officially confirm it had abandoned plans to sell the coffee chain after incoming bids failed to meet expectations. Coca-Cola originally acquired Britain’s largest coffee chain for £3.9bn in 2018 from Whitbread. Schaillee stated that coffee production and commodity prices remain elevated and could face further disruption from the El Niño global climate phenomenon affecting growers in Latin and South America.
Frequently Asked Questions About Costa’s Financial Results
What was Costa’s operating profit for the year ending 31 December 2025?
Costa Ltd reported an operating profit of £20m for the year ending 31 December 2025, according to accounts filed at Companies House. This compares with operating losses of £13.5m in 2024 and £5.8m the year before.
How many net new outlets does Costa plan to open in the UK?
The chain opened a net 50 new outlets in the UK last year and plans to open another 50 new UK outlets this year, focusing on drive-throughs and high street locations.
When did Coca-Cola acquire Costa and for how much?
Coca-Cola purchased Costa for £3.9bn in 2018 from Whitbread, the owner of Premier Inn hotels, before later abandoning plans to sell the chain in February after bids failed to meet expectations.
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