- Caffè Nero has had 11 consecutive months of positive cashflow
- Sales increased by 160% from January 2021 - October 2021
- Sales are now c. 87% of pre-Covid levels
- New channels and customer numbers are building rapidly
- The company intends to open dozens of new stores in the coming 12 months
Premium coffee house Caffè Nero has today announced 11 months of continuous trading recovery. The company has been cashflow positive for each of the past 11 months. Sales have also continued to build each month with growth of 160% from January 2021 - October 2021.
Parts of the Caffè Nero estate, namely stores in market towns and suburbs, are already back to 2019 sales levels. Stores located in high street shopping and destination shopping areas are nearly back to 2019 sales levels. However, central London stores and transport hub stores have been recovering somewhat slower, although recent upticks in these segments have occurred in September. Overall, sales at Caffè Nero have now reached 87% of 2019 levels, with the company expecting to reach sales levels of 90% in November.
Additionally, through the pandemic Caffe Nero has continued to develop and improve its Coffee at Home business of capsules, whole beans and ground coffee products. It has recently established retail partnerships with Amazon, Sainsbury’s and Waitrose to carry its coffee range. Similarly, sales through delivery partner Uber Eats have been growing, rising 200% in like for like sales in the summer and autumn.
The U.K. Government’s lifting of restrictions and the UK’s return to some semblance of normality, combined with the actions and improvements to the business that management have implemented, have resulted in Caffe Nero achieving £15m of EBITDA in the 1st Quarter of its financial year (June-August 2021).
Finally, Caffè Nero is also pleased to announce that it has now paid back all the debt it borrowed during the pandemic. This means that its current debt situation is the same as its pre-pandemic level.
Gerry Ford, Founder and Group CEO, Caffè Nero commented:
“We are coming back. Not there yet, but Caffè Nero is on the road to recovery. Each month trading is getting stronger and our prospects and opportunities going forward are becoming more encouraging. We had a strong 1st Quarter (June-August) and many parts of our store estate are back to 2019 sales levels or are even experiencing positive like-for-like sales. We expect to see that trend continue and sales to strengthen further over the coming weeks and months. This solid trading is very encouraging and is providing a good platform for us to restart the engines and open a series of new stores over the next 12 months.”
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Notes to Editors
About Caffè Nero Group Ltd:
- Caffè Nero is the largest independent coffee house group in Europe.
- Caffè Nero remains a family owned and operated business.
- The Nero Group operates over 1,000 stores across 10 countries.
- The Group has more than 650 Caffè Nero stores across the UK.
- The Nero Group currently employs over 6,000 people in the UK.
- Since 2016, through its charitable foundation, Caffè Nero has donated over a quarter of a million pounds to UK causes and funded schools and farmers in the communities which help produce its coffee beans.
- Caffè Nero was founded by Gerry Ford in 1997.
Details
| Published: | November 1st, 2021 |
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