Sales soared towards £100m and profits more than doubled at the 海角视频’s largest Starbucks franchise in the year leading up to its acquisition by the US coffee giant, recent findings show.
23.5 Degrees has reported an impressive turnover of £93m for the 12-month period ending on 31 August, 2024, a sizeable increase from the £83.5m recorded in the previous year, as reported by .
The detailed accounts submitted to Companies House also reveal that the company’s pre-tax profits experienced a considerable leap, rising from £1.6m to £4.1m over the same period.
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These robust results have been disclosed following the takeover of 23.5 Degrees by Starbucks in October 2024.
Having launched in 2013, 23.5 Degrees holds the distinction of being the first and largest Starbucks franchise within the 海角视频.
Upon the acquisition, Starbucks 海角视频 general manager Alex Rayner commented: "I want to acknowledge the important contributions of 23.5 Degrees and the dedicated green apron partners."
Rayner further elaborated on the strategic benefits of the move: "This strategic move will enable us to enhance our investment in new locations, elevate our in-store experience, and drive innovation for our 海角视频 customers."
Despite facing backlash in the form of protests, the Starbucks franchise remains unfazed. A statement endorsed by the board of 23.5 Degrees addressed the issue: "Whilst there has been localised disruption within the store estate due to false perception of brand association with Middle East conflict, underlying trading remained strong."
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The statement went on to highlight favourable economic conditions, noting that the inflationary pressures observed in 2023 had subsided with the onset of the new fiscal year.
Additionally, the group has reaped the rewards from an adjustment in commodity prices and the fortuitous procurement of a lower rate electricity contract from November 2023 that cut costs per kWh in half compared to previous rates.
"Overall the business performed strongly by sticking to its operating model by putting its partners and customers at the front of [the] decision-making process.
"This has been developed and honed over the last decade and as a result continues to deliver industry-leading transaction growth and partner loyalty."
Over the course of the year, the average number of employees in the business rose from 1,729 to 1,871.
Earlier this month, filings with Companies House revealed that Starbucks suffered a pre-tax loss of £35.2m in the 12 months leading up to 29 September, 2024. This loss followed a pre-tax profit of £16.8m in the previous year.
The results also indicated a decrease in turnover from £547.6m to £525.6m over the same period.