Robust US Company Boosts Starbucks Profits | 2021-10-29


SEATTLE – The strength and resilience of the Starbucks brand, coupled with the connection, trust and loyalty the company has established with customers around the world “resonates,” said Kevin R. Johnson, President and CEO from the management of Starbucks Corp.

These attributes helped fuel performance throughout FY2021 and set the stage for further growth in FY2022.

Starbucks’ net income for the fiscal year ended Oct. 3 was $ 4.2 billion, or $ 3.54 per share on common stock, up sharply from $ 928.3 million. dollars, or 79 per share, in fiscal 2020. Fiscal 2021 results included a gain of $ 864.5 million. the sale of certain operations.

Net revenue for fiscal 2021 increased 24% to $ 29.06 billion from $ 23.52 billion.

Comparable store sales in the United States increased 21% in fiscal 2021, driven by a 13% increase in average ticket and an 8% increase in comparable transactions.

“We made significant progress in resolving supply chain issues and saw an overall improvement in inventory availability during the quarter by increasing production at existing suppliers, onboarding new suppliers, and providing leadership. strategic priority to key vacation and first quarter merchandise, ”said Johnson. “While we have made significant progress in addressing supply chain challenges in FY2021, we remain cautious and vigilant heading into FY22 given the dynamic nature of the situation. . “

John W. Culver, Group President North America and COO, explained Starbucks’ strategy for meeting supply chain challenges, noting that the company has worked closely to add new partners to manufacturing and sourcing in critical categories.

“It’s paying dividends for us, and we’re seeing a decrease in inventory in those categories ie oat milk, breakfast sandwiches, egg bites, etc.” Mr Culver said. “We are developing throughput and production capacity. We have suppliers who are adding new lines so that they can increase their safety stock. We work with suppliers to invest in the wages of their workers, and many of them have.

“And the last thing I would say what we’ve done is we’ve really focused our production efforts on high volume items. And some of those low volume items that we’ve taken out and prioritized. So all of this work and the actions that we took, we started really early when we started seeing these challenges. We have addressed them. We are not out of the woods yet, but we feel very good on the path we are on. “

Mr Johnson said the US market is at a “unique inflection point”.

“Stakeholders and companies whose leaders correctly identify emerging trends, shape strategic actions wisely and invest in the future will be big winners in the long run. Over the coming quarters, Starbucks will continue to focus its investments in high yielding assets that we believe will accelerate our growth model at the double digit scale, fostering sustainable and profitable growth over the long term. “

He noted that a “rich pipeline of innovations” should improve the Starbucks in-store experience and drive productivity gains in-store. Innovation at your fingertips includes the Mastrena 2 espresso machines that more efficiently shoot triple espressos, as well as a Deep Brew artificial intelligence platform that has automated day-to-day inventory management.

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