By Angela Green, Content Executive, H&C News: Caffe Nero FY2022 results and half year trading update.
The Institute of Hospitality Golf Day 2023, in partnership with Caterer.com
For the first half of its current financial year FY23 June 2022-Nov 2022, Caffè Nero reported sales in the UK of £150 million, averaging 104% of pre-pandemic levels and an increase of 17% for the same period in 2021.
Caffe Nero also reported that sales during the key Christmas trading month of December 2022 reached 110% of pre-pandemic levels, a 9.5% like for like increase compared to December 2021. The UK business achieved record weekly sales during w/c 5th December of £7.9m, and served 7.8 million U.K. customers during the month.
Despite a challenging period for costs, the family owned coffee house also opened 7 new stores in the UK during the half year, and experienced a notable and encouraging increase in several of its new sales channels. Its Delivery business benefited from adding new partners Deliveroo and Just Eat to existing partner Uber Eats to generate £3.5m of revenue. Likewise, its Coffee At Home business for the same period achieved sales of £1.5m. This was supported by a new strategic partnership with Waitrose and continuing momentum from its own channels and retail partnerships with Amazon, Ocado, Sainsbury’s and the Ambassador Theatre Group.
At a group level, Caffe Nero had 1,023 stores across 10 countries at the end of the first half of the financial year (June 2022 – Nov 2022) with sales of £231m, an increase of 20% like for like against the previous year.
Caffè Nero Founder and Group CEO, Gerry Ford commented: “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.”
Results for FY22 June 2021 to May 2022
During that period, UK sales increased from £153.3m (FY21) to £254m (FY22), an increase of 65%, with UK EBITDA at £46.7m, which was 19% above the previous year. This was the result of the progressive lifting of Covid restrictions during the financial year as well as the resumption of Caffè Nero’s store opening programme which saw four new stores opened in the UK.
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.
Commenting on the FY22 accounts, Founder, Owner and Group CEO, Gerry Ford stated: “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.”
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