Costa Coffee FY25 sales jump 31%; company expands footprint to 220 outlets - check details

NEW DELHI: Costa Coffee, the British coffee chain, reported a significant increase in its India operations, with revenue climbing 30.76% to Rs 198.5 crore in FY25, while profit increased by 28.4% to Rs 149.7 crore.The company expanded its presence from 179 to 220 outlets in FY25, contributing to this growth, as detailed in Devynai International Ltd's (DIL) annual report.For the financial year ending March 31, 2024, the company recorded revenue from operations of Rs 151.8 crore and profit of 116.6 crore.The company experienced a slight decrease in gross margin to 75.4% from 76.8% in FY24, due to increased costs of coffee beans and other raw materials."The brand contribution margin came down from 17% to 16.1%, with average daily sales (ADS) per store declining from Rs 33,000 to Rs 27,000, translating into a reduction of same store aales growth (SSSG) from 8.7% to 4.1% during this period," said DIL.DIL, a prominent QSR chain operator, manages Costa Coffee's Indian operations through a franchise agreement.In April this year, Costa Coffee's Global CEO Philippe Schaillee informed PTI during his visit that India would become one of the brand's top five global markets.

The coffee brand, currently under Coca-Cola's ownership, ranks among the top ten markets globally."Costa Coffee is aggressively expanding in India, targeting 40-50 new outlets annually despite global economic uncertainties. DIL sees India as a high-potential market, driven by a growing preference for premium coffee among millennials and Gen Z," said DIL.The coffee sector in India is experiencing growth rates of 10 to 12%, twice the global average.

The report indicated that India, currently among Costa's top 10 markets globally, could advance to the top five markets within five years.DIL noted that India, traditionally a 'chai' consuming nation, is witnessing a significant shift in beverage preferences, particularly among younger generations influenced by Western culture.Costa Coffee faces stiff competition in India's growing café market, not only from global players like Starbucks, Tim Hortons, McCafé, and Dunkin’, but also from homegrown brands such as Café Coffee Day, Blue Tokai, Third Wave Coffee, and Barista, which are all expanding their presence.