Costa Coffee returns to profit following scrapped Coca-Cola sale

Costa Coffee has returned to profitability, reporting an operating profit of £20m for 2025. This marks a recovery from a £13.5m loss in 2024, which the company attributed to soft footfall and increased competition from value-led brands.

Revenue for the UK’s second-largest coffee chain grew by 5% to £1.3bn. CEO Philippe Schaillee credited the turnaround to an investment plan focused on branch refurbishments and product innovations, such as Matcha and Ube drinks. Despite the operating profit recovery, statutory profit saw a 7% decline to £62m.

The financial turnaround follows Coca-Cola’s decision in January to scrap plans to sell the chain to private equity bidders, including TDR Capital, Bain Capital, and Apollo, after they failed to meet expectations.

In the competitive UK market, Greggs recently overtook Costa to become the country’s largest branded coffee destination by outlet count. Costa is currently slowing its expansion, aiming to open between 40 and 50 new sites over the next year following the opening of 79 stores in 2025.