Starbucks Brew Up a Healthy Profit
Starbucks Coffee Company, EMEA, filed accounts for the year ending October 2, 2016.
In the year to October 2016, Starbucks EMEA saw turnover increase by 17% to $217m on the back of an increase in store count to 2,642, and expansion into new markets, such as South Africa and Slovenia and continued outperformance in Turkey. This is despite disappointing results from the UK.
Furthermore, increased coffee manufacturing as a result of store and like-for-like growth has contributed materially to the increase in revenues.
In 2014, Starbucks moved its European Headquarters to the UK, its largest market in the region. As a result of this restructuring the intellectual property of the Starbucks brand in EMEA has resided in the UK since 2015, enabling the local collection of royalties for the region. This collection of royalty income is subject to corporation tax and has led to a tax charge of $37m over the last two years.
President for EMEA Starbucks Martin Brok said, "These results demonstrate the work we have undertaken to bring our company structure in line with the way we run our business today and enhance transparency. The growth we experienced during the period has been driven by expansion into new markets and focus on decreasing costs as we continue to invest in growing our presence across the region. Customers are seeing new and renovated stores, innovation in our food and drinks and a renewed commitment to the environment, and the communities we serve.”
Photo credit: Starbucks Newsroom
