Costa Coffee saw financial losses more than double in 2024 as the chain grappled with slow footfall and cheaper competition.
Operating losses widened from £5.8m in 2023 to £13.5m in the year to 31 December 2024, according to the latest figures filed at Companies House.
The coffee giant said the loss was “primarily driven by challenging conditions with soft footfall and growth of value-led competitors”.
However, revenue edged up 1% to £1.2bn for the period.
Speaking with The Grocer late last year, Clive Black, head of consumer research at Shore Capital, said Costa’s key problem is one of positioning.
Food-to-go players such as Greggs and McDonald’s have “eaten into the British coffee market at lower price points”, he said, while more artisanal competitors like Gail’s are benefiting from “provenance, location, story and better food”.
It comes as Costa’s owner, Coca-Cola, continues to explore the potential sale of the coffee chain, just five years after acquiring it from Premier Inn owner Whitbread in a £3.9bn deal. Analysts have suggested Costa may now be sold for £2bn.
During the fmcg giant’s second-quarter earnings call in July, Coca-Cola CEO James Quincey said Costa had “not quite delivered” and was “not where we wanted it to be from an investment hypothesis point of view”.
In December, the Financial Times reported that Coca-Cola was holding last-ditch talks with Asda owner TDR Capital in a bid to rescue a sale of Costa. It came as discussions with Coca-Cola and its advisers at Lazard had come into complications over price, people close to the situation said.
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