Caffè Nero eyes Irish growth as revenues rise to €5m

The company behind the Caffè Nero coffee shop chain is expecting to open further locations in Ireland.

That is according to new accounts which show that Caffè Nero Ireland Ltd posted a pre-tax profit of €353,000 as revenues increased by 36% to almost €5m in the 12 months to the end of May 2018.

The company opened four new outlets in the 12 months its 2018 financial year which brought the number its sites open that year to 12.

The directors said that they “believe there are strong growth prospects in the branded coffee bar market in Ireland”.

They said that profit for the year was generated “due to continued growth from store openings and a reduction in start-up costs in this new territory”.

The directors said that they have a growth target in the range of between 2% and 4% in like-for-like sales annually.

Staff numbers increased from 60 to 76 in 2018, as staff costs rose from €1.19m to €1.67m.

The company posted the profit after taking into account non-cash depreciation costs of €485,000 and despite operating lease costs increasing sharply from €492,000 to €802,000.

Accumulated profits at the end of May 2018 totalled €265,000. The company’s cash funds reduced from €960,000 to €359,000.