Coffee retailer Nespresso sees record revenue in Ireland in 2021 thanks to remote workers and ‘locked-down consumers’.
In the 12 months to end December, sales in Ireland increased from £28.7m to £456,000 to a record £29.15m (€33.99m), according to new accounts filed by Nespresso UK Ltd. rice field.
The Nestlé-owned company operates a number of boutique outlets here, including a flagship store in Dublin’s Duke Street, and last year its Irish operations generated an average of £560,711 (€653,844) per week. I made a profit.
Nespresso’s 2021 sales were boosted by the closure of some cafes and restaurants due to Covid-19 lockdowns.
The directors also said the company’s growth was “driven by e-commerce and the Virtuo system,” adding that “high demand from consumers and telecommuters during the lockdown, as well as consumer awareness of high-quality coffee, has contributed to the growth of the company.” In addition to continued growth, Nespresso’s brand recognition has increased.”
Highlighting Nespresso’s growth here, last year’s sales of £29.14m are almost double Nespresso’s sales in Ireland in 2016 (£14.7m).
Despite the positives for “Covid consumers,” the annual report noted that the pandemic will continue to be a challenge through 2021.
Overall, the company’s directors said that with Irish sales (£29.15 million) accounting for 5.8% of Nespresso’s UK and Ireland sales of £308.22 million, the company “maintains a strong financial position and performance.” I keep doing it,” he said.
The company’s UK revenue increased by £20m to £279m in 2021.
Nespresso’s profit before tax also increased by 4% last year to £12.2m, posting a profit after tax of £9.83m after paying corporate tax of £2.37m. This gain takes into account non-cash depreciation and impairment charges on property, plant and equipment of £13.3m.
The directors have recommended increasing the final dividend for 2021 to £9.8m from the final dividend paid in 2020 of £8.7m.
The annual results show Nespresso’s workforce across Ireland and the UK fell to 684, down from 783 last year, with staff costs totaling £31.1m.