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

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Nine big ideas that could seriously progress Ireland

INHFA seeks local limit to forestry payments

Credit cards boost Virgin Money

UK body identifies gaps in terror insurance backstop


Breaking Stories

Interim examiner appointed to two companies who publish Golden Pages

Iarnród Éireann to refurbish 28 carriages after six years out of service

Boost for tourism in Ireland as visitors flock to the Emerald Isle

Government approves amendment allowing breweries to sell alcohol to touring visitors

Lifestyle

Mobile library on the move to bring joy to Cork communities

Three great routes for summer scrambling fans

Back to Ballybeg with the Mundy sisters

More From The Irish Examiner