Costa Coffee Bounces Back to Profit After Coca-Cola Abandons Sale Plans
Costa Coffee has made significant strides in its turnaround efforts after Coca-Cola abandoned plans to sell the chain due to low bidder interest. The UK's second-largest coffee chain reported a five per cent revenue growth to £1.3bn last year, marking a return to operating profit.
The decision to pursue the brand's revival under existing ownership has yielded positive results, with Costa chief executive Philippe Schaillee attributing the success to investment in branch refurbishments and product innovation.
Costa's operating profit reached £20m in 2025, contrasting sharply with a £13.5m loss in 2024 attributed to 'soft footfall' and increased competition from cheaper coffee chains.
The company has shifted its focus towards an extensive refurbishment programme, having refreshed 1,063 stores since 2023, and plans to open between 40 and 50 new sites across the next year.