In the backdrop of corporate tax practice revelations by coffee chain giant Starbucks, its profits in the United Kingdom saw a 3.4% in comparison to last year’s figures. The company reported sales of £399 million up to September 29, 2013.
However, according to company officials, this decline could be attributed to the company’s decision to shutter a number of unprofitable outlets in the United Kingdom, and not because of any other reasons. This is the first time in the last 16 years-when Starbucks started operating in the U.K.-that the profits have shown a downward slide.
In this financial year, the company also reportedly slashed its average workforce in the U.K. by 11.6%, bringing it down to 7,726.
The company’s gross profit had recorded a 13% increase, reaching £79.7 million, after which tax deductions of £100.5m were levied.
The company’s pre-tax loss was reported as being £20.4 million during this period, which was a £30.4 million decrease as compared to its 2011-12 financial year figures.
The company said that the £10 million decline in its pre-tax loss was because of a rise in its gross profits. On the other hand, the company’s staff costs also fell by nearly £13.5 million during the tax year as compared to the previous tax year.
Sky News reported that the company, in a statement, said that it had recorded strong growth in the EMEA region, with profit tripling on a year-on-year comparison. Its revenue growth of 13% was reported as being the highest in two years