Starbucks profits rise 47% to €721k

The Irish arm of coffee giant Starbucks increased its profits by 47% to €721,327 in 2012 — but paid no corporation tax.

Abridged accounts just filed by Ritea Ltd show the firm recorded an increase in pre-tax profits after its gross profit increased by 4% from €2.41m to €2.49m in the 12 months to the end of September 30, 2012.

The accounts for the Irish firm show that the company increased operating profits by 40% from €570,450 to €801,416 in 2012 with net interest payments totalling €80,089 reducing profits.

Weeks prior to the end of the 2012 financial year, Starbucks signed a deal with Dublin-based Entertainment Enterprises Group for it to licence Starbucks’ 17 stores in Ireland. The number of outlets in the greater Dublin area now stands at 33.

In 2011, Starbucks Coffee Company (Ireland) paid corporation tax of €34,980 — its only corporation tax paid since 2005. In that six- year period, it paid €5.7m in royalty and licensing fees to its parent firm.

The UK unit of Starbucks came under fire last year over its tax record and last June paid £5m (€6m) in corporation tax to revenue — its first payment in five years.

The Ritea 2012 accounts show that through the 12.5% corporate tax rate, it would have been liable to corporation tax of €90,166.

However, the accounts show unutilised tax losses of €30,765, and differences between capital allowance and depreciation totalling €76,558, combined with expenses not deductible for tax purposes totalling €17,157, resulted in a zero tax bill.

Ritea yesterday declined to comment on its business.

The profit takes account of non-cash depreciation costs of €333,484. It helped to reduce accumulated losses from €12m to €10.5m.

© Irish Examiner Ltd. All rights reserved

More in this Section

Federal Reserve chair Janet Yellen hints at further rate hike this year

Deferred flotation costs One51 €2.7m

Volkswagen agrees $1.2bn dealer compensation plan

Tetrarch given go-ahead for €16m Dublin city hotel behind former Clery’s store


Lifestyle

Irish wool textile weaving is alive and thriving

Make your garden a musical haven, with help from green-fingered DJ Jo Whiley

Robin Gill’s Garden Courgette with Smoked Buffalo Milk Curd and Roof-Top Honey

We ask some siblings what it’s really like to work with your sister

More From The Irish Examiner