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Fri 13th Dec 2019 - Exclusive: Caffe Nero full-year like-for-likes up 3.1%, paid almost £30m for Coffee#1 stake
Exclusive – Caffe Nero full-year like-for-likes up 3.1%, paid almost £30m for Coffee#1 stake, plans 80 openings worldwide: Caffe Nero Group paid almost £30m to acquire a majority stake in Coffee#1 in February from Welsh brewer and retailer SA Brain, newly filed accounts have revealed. The figure of £29.8m includes a deferred amount of £3.8m that is set to become payable no later than 42 months from the date of acquisition because of “continued strong store sales and the synergies realised”. The deal saw Caffe Nero Group add 92 stores to its UK portfolio. As well as its eponymous brand and Coffee#1, the group also operates Harris + Hoole and coffee brand Aroma. The company said it plans to open 80 sites worldwide across its four brands in the next year. Like-for-like sales increased 3.1% for the year ending 31 May 2019, and Propel understands the company has continued to see steady growth in its current financial year despite the difficult political and economic environment. The accounts showed full-year group sales rose 11% to £366.1m from £334.4m the previous year. The results mark 86 consecutive quarters of like-for-like sales growth for Caffe Nero since Gerry Ford founded the group in 1997. Store profit was up to £78.1m, compared with £75.2m the year before. Pre-tax losses were up to £30.2m, compared with £8.6m the previous year. The group paid total tax of £71.2m during the year, representing 24% of total UK sales for the group or £102,000 per store. As well as the majority purchase of Coffee#1, the group also entered the Swedish market having acquired 11 stores from Coffeehouse by George, with three converted and opened as a Caffe Nero by the end of the year. The company said it was pleased with the start the stores had made. Additionally, 59 Caffe Nero stores were opened worldwide – 18 in the UK and Ireland, although five stores were handed back to landlords. Three Harris + Hoole stores were opened, taking the brand to 41 sites. The group opened 11 stores in Turkey and shut seven, mainly due to the closure of Istanbul Ataturk airport, leaving it with 60 stores in the country at year end. Caffe Nero said it expected continued progress as it’s scheduled to roll out stores in Turkey. Green Caffe Nero, as the brand is known in Poland, opened four sites during the year, bringing the total to 67. The group opened seven sites in Massachusetts and Connecticut in the year, bringing its total in the US to 29. The directors said they were satisfied with the performance of the new sites, while further openings are expected. The group opened eight franchise sites bringing the total to 1,026 across 11 territories, with almost 800 stores in the UK. Ford said: “Our positive sales performance is testament to our continued belief that investing in the quality of our coffee and our people is key to our success. Despite a challenging environment for hospitality, we’ll continue to invest in delivering a premium experience for our customers and in growing our estate through creating welcoming and vibrant coffee houses.”


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