STARBUCKS LOSSES in Ireland moved from tall to grande size last year due to costs associated with the closure of six company-owned outlets.
Latest accounts for Starbucks Coffee Company (Ireland) Ltd show its pre-tax losses doubled to 3.28 million in the 53 weeks to the end of October 3rd, 2010.
Revenues at the Seattle-based coffee brand, which opened here in 2005, fell by 10 per cent last year to 16.1 million.
Its cost of sales and administrative expenses remained the same as in 2009, with the result that its operating loss rose to 2.88 million last year from 1.2 million in the previous 12 months.
The coffee giant booked a loss on the disposal of fixed assets of 117,389 and incurred interest charges of 286,806, to leave it with a loss for the year of 3.28 million for the year.
Starbucks's Irish subsidiary had accumulated losses of 12.5 million at last October and a shareholders' deficit of 8.3 million.
The accounts show the Irish company paid royalties and licence fees of 875,303 last year to its Seattle-based parent. This was down from 1.14 million in 2009.
Its employee figure fell to 234 from 280, with staff costs down from 6.1 million to 5.2 million.
The directors' report states that the company introduced Aviva health insurance policies for staff during the period.
It was also "able to redeploy 90 per cent" of staff who were at risk of redundancy from its decision to cut the number of company-owned outlets from 23 to 17. |
