The premium coffee group said Caffè Nero’s UK revenues were boosted by delivery, at-home and wholesale segment growth, with like-for-like store sales in Turkey and Sweden also robust
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Caffè Nero operates more than 620 sites in the UK | Photo credit: Caffè Nero
The Nero Group has reported record trading for the first half of its financial year both in the UK and internationally.
The Nero Group, which operates the Caffè Nero, Coffee#1, Harris+Hoole, 200 Degrees and FCB Coffee chains, achieved 13.6% year-on-year group sales growth in the six months ended 30 November 2024 to reach £310m ($388.5m).
The premium coffee group currently operates 1,120 stores across 11 markets globally, over 750 of which are in the UK. Caffè Nero, which has more than 620 sites in the UK, achieved 11% year-on-year sales growth during the period to reach £185.4m ($232m).
In a press release, The Nero Group highlighted two successful Caffè Nero single origin coffee campaigns in the UK alongside an 8% rise in delivery revenues and 20% sales growth for its Coffee at Home business.
Caffè Nero’s UK wholesale business achieved 35% year-on-year revenue growth, driven by the expansion of its retail partnership with premium supermarket chain Waitrose. During the reporting period, the partners opened five ‘best of both’ cafès – which serve Waitrose food alongside The Nero Roasting Company coffee – as well as the first Caffè Nero store inside a John Lewis outlet.
Caffè Nero achieved strong like-for-like sales growth in Turkey (12%) and Sweden (9%) – where the coffee chain operates 102 and 13 outlets respectively. The UK-based coffee chain also operates in the US, Cyprus, Ireland, the UAE and Poland, where it operates as Green Caffè Nero.
“The first half was very encouraging. Our success is a reflection of the hard work and outstanding service from our store teams and the real momentum we’ve built through menu innovation. We have delivered record sales at both group and UK level, and it leaves us well placed to have a strong full year, despite significant financial costs and challenges which the business will have to overcome in the coming months,” said Gerry Ford, Founder and CEO, The Nero Group.
The Nero Group added 63 new outlets during the first six months of its financial year, comprising 31 net new stores and 32 additions from the acquisitions of 200 Degrees and FCB Coffee in October and November 2024 respectively.