Key facts
- Costa Limited reported an operating profit of £20 million for the year ended December 31, 2025.
- This marks a return to profit after losses of £13.5 million in 2024 and £5.8 million in 2023.
- Revenues for Costa Limited increased 5% to nearly £1.3 billion.
- Global sales for parent company Costa Group rose 3.5% to £1.74 billion.
- Global operating profit for Costa Group increased 30% to £101 million.
- Costa plans to open a net 50 new outlets in the UK this year.
Costa's main coffee shop arm has returned to profitability, reporting an operating profit of £20 million for the year ended December 31, 2025, a significant turnaround from losses of £13.5 million in 2024 and £5.8 million the previous year. The company attributes this recovery to revamping its high street outlets and broadening its menu with offerings like iced drinks, matcha, and fresher pastries.
Revenues for Costa Limited rose 5% to nearly £1.3 billion, compared to 1% growth in 2024. This strong performance contributed to global sales at parent company Costa Group increasing by 3.5% to £1.74 billion, with global operating profit up 30% to £101 million.
Philippe Schaillee, chief executive of Costa, noted the strongest growth in visits in a decade, highlighting a shift in consumer demand towards destinations offering not only caffeine but also iced herbal teas and other drinks suitable for afternoon and evening consumption. The chain is also expanding its physical presence, opening a net 50 new outlets in the UK last year and planning for another 50 this year, including more drive-thrus and high street locations. Costa plans to remodel approximately 250 stores annually.
The company is also focusing on digital self-order kiosks, already present in 200 UK outlets, and expanding its Podio office coffee machine business. Costa is currently the UK's third-largest brand in home coffee machines, with Schaillee seeing "limitless" potential in this area.
This positive performance comes after its owner, Coca-Cola, confirmed in February that it had abandoned plans to sell Costa, as bids did not meet expectations. Coca-Cola acquired Costa for £3.9 billion in 2018, but the chain has since faced challenges from rising costs, particularly coffee bean prices, and intense competition on UK high streets. Schaillee acknowledged that coffee production and prices could be affected by the El Niño phenomenon.