Delivery and packaged coffee boost Caffè Nero’s strong half-year UK sales

Caffè Nero currently operates more than 620 UK stores and over 400 internationally | Photo credit: Caffè Nero

Caffè Nero has credited strong delivery and packaged coffee sales as key contributors to its half-year results in the UK. 
 

Reporting on the six months ending 30 November 2023, Caffè Nero said it withstood significant inflationary pressures to post 10% year-on-year UK sales growth to £200m ($253m).  

The coffee chain, which operates more than 620 stores in the UK, said delivery partnerships with UberEats, Deliveroo and Just Eat generated £4.7m ($5.9m) revenue – a 28% increase on the previous year. 

Additionally, the group’s packaged Coffee at Home segment achieved 58% year-on-year sales growth to £1.9m ($2.4m), driven by a new partnership with UK supermarket chain Morrisons and existing distribution deals with Waitrose, Amazon, Ocado and the Ambassador Theatre Group. 
 

Caffè Nero also reported strong festive trading across the UK, posting a record £8.4m ($10.6m) week at the end of November 2023 and serving more than 7.7 million customers in December. Like-for-like sales in November and December 2023 grew 7% to exceed £60m ($75.9m). 
 

“Despite significant ongoing inflationary pressures that had a notable effect on our business, we have delivered solid sales growth and demonstrated strong cost control. This is a testament to the hard work and outstanding service from our store teams as well as a very well received menu innovation in the UK, including the Amaretto Latte in the autumn and a hugely successful Christmas menu,” said Gerry Ford, Founder and Group CEO, Caffè Nero Group. 
 

Caffè Nero currently operates 1,057 stores across 10 markets, including portfolios in Poland – where it trades under a joint venture as Green Caffè Nero – the US and the UAE. Its international business posted sales of £65m ($82m) during the reporting period. 
 

The London-based business also released its annual results for its financial year ending 31 May 2023, with group sales rising 16% year-on-year to £450m ($569m) and EBITDA reaching £41.7m ($52.7m). Its UK business generated over two-thirds of total sales at £302m ($382m) – a 19% year-on-year increase.