Costa Limited reported an operating profit of £20 million for the year ending December 31, 2025, recovering from a £13.5 million loss in 2024. The company has revamped its offerings, introducing iced drinks and matcha, and opened 50 new outlets in the UK, marking its first net increase in several years.
The chain's revenue rose by 5% to nearly £1.3 billion, driven by demand for decaf options among younger consumers. Costa's parent company, Coca-Cola, confirmed it would retain the coffee chain after unsuccessful sale attempts, while concerns about coffee production and pricing due to climate factors persist.
Watch for Costa's continued expansion with 50 new UK outlets, focusing on drive-thrus and high street locations. The shift towards iced drinks and matcha could reshape consumer preferences, while the impact of climate on coffee prices remains a critical factor to monitor.