27 April 2012 --- US coffee giant Starbucks has reported a sharp rise in profits. Net income for the first three months of the year was $309.9m, up 18% on the $261.6m the firm made a year earlier. Revenue rose 15% to $3.2bn.
Net revenues for the China/Asia Pacific segment reached $174.6 million in Q2 FY12, an increase of 32% over Q2 FY11.
Results were weaker in Europe, sales decreased by 1% over the same period. The Europe/Middle East/Africa sector of the company reported reported an operating loss of $5.5 million in Q2 FY12, compared to operating income of $7.7 million for the same period a year ago.
Nevertheless the company has raised its profit forecast for the full year.
"Starbucks record Q2 performance demonstrates the strength of our business, the increasing power and global relevance of our brand and the success of our unique Blueprint for Profitable Growth business strategy," said Howard Schultz, chairman, president and CEO. "In Q2 we expanded our retail presence, recorded our seventh consecutive quarter of over 20% sales growth in China, introduced new products into multiple channels and more than offset high legacy commodity costs through increased efficiencies. I could not be more excited or more optimistic about the future of our company as we pursue disciplined, profitable growth all around the world," Schultz added.
“Starbucks delivered strong growth in the fiscal second quarter, again demonstrating the value of our evolving diversified business model. Revenue growth was driven by continued strong global same store sales and an increasing contribution from our Channel Development segment,” commented Troy Alstead, cfo. “On the strength of our business and recent trends, we are accelerating new store growth in fiscal 2012 to approximately 1,000 net new stores globally, and raising our earnings targets for the year. With coffee cost pressures easing in the second half of the year and momentum building from investments in our growth initiatives, we are well positioned to deliver on our aggressive targets.”