The growth is driven by the ownership change in East China as well as their 13% store growth.
Starbucks has announced the first quarter financial results for the China/Asia Pacific segment with net revenues soaring 45% year-over-year at US$1.23 billion from US$843.7 million.
The growth is attributed to ownership change in East China, a 3% increase in comparable growth sales and 13% store growth or 1,010 new site openings over the past 12 months.
“Starbucks delivered solid operating results in the first quarter, demonstrating continued momentum in our business, as we drive our growth-at-scale agenda with focus and discipline. With this solid start to the fiscal year, we are on track to deliver on our full-year commitments,” Kevin Johnson, president and CEO of Starbucks, said.
Operating income also rose by 13% at US$221.5 million as compared to US$196.8 million last year.
Overall, consolidated net revenues grew by 9% at US$6.6 billion year-over-year. Global comparable store sales also increased 4% that is said to be driven by a 3% growth in average ticket. Starbucks also opened a total of 541 outlets during the quarter.
“Comprehensive efforts to streamline our business have allowed us to focus on three key strategic initiatives that position Starbucks for long-term success: accelerating growth in our targeted markets of the U.S. and China, expanding the global reach of the Starbucks brand through our Global Coffee Alliance with Nestlé, and increasing shareholder returns,” Johnson continued.
Photo credit: Starbucks Singapore
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