The London-based operator of Caffe Nero said that it managed to grow its sales to a record high of £310 million ($388 million) in the first half of its financial year despite having to contend with rising costs.
The Nero Group’s founder and CEO Gerry Ford said, “We delivered record sales at both group and U.K. 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.”
The coffee shop chain said overall sales grew 13.6% year-over-year for the six months ended November 2024, and an increase of 8% in like-for-like sales.
The chain, which describes itself as the largest independent coffee house group in Europe, currently has around 1,120 stores operating across 11 countries.
Just over half of its stores are located in Britain, where it generated sales of £185 million in the first half of its financial year, an 11.4% jump from the same period a year earlier.
The Nero Group also noted that it was able to achieve strong like-for-like sales growth of 12% for its stores in Turkey and 9% in Sweden.
The coffee chain grew its overall network by adding 63 more stores, 31 of which were new stores and the remainder were gained through the acquisitions of FCB Coffee in November and 200 Degrees Coffee in October. It now operates a string of brands that also includes Caffe Nero, Coffee #1, Harris + Hoole and Aroma.
Ford first established his coffee business in 1997, when he acquired five retails sites across London. The American entrepreneur named the chain after the Italian for “black coffee” and grew its network of stores by investing its profits back into the business over the years.
Ford listed the chain on the London Stock Exchange in 2001, but later concluded the market was undervaluing the company’s stock, so he took it private again with the backing of venture capital group Paladin in 2007.
Two years later, the Nero Group bought its roasting facility in Battersea, South London, which now produces the coffee used in all of its stores.
The Nero Group saw its sales “decimated” by the pandemic, but the business subsequently managed to bounce back to pre-Covid levels. It generated £450 million in revenue in its last financial year.
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