Costa flips £13.5m loss into £20m profit on iced drinks and matcha

Costa Ltd turned a £13.5m loss into a £20m operating profit for the year to 31 December 2025, thanks to a splash of iced drinks, a matcha makeover and a pastry refresh.

When the summer heat finally arrived, Costa’s baristas swapped bitter for bubbly, a shift that brewed a profit as hot as the new iced matcha.

The chain’s high‑street outlets were given a facelift – old‑fashioned counters gave way to cleaner décor and a fresher line of pastries that would make any baker smile.

Iced drinks and matcha, once niche offerings, now sit front‑and‑centre on the menu, drawing office commuters and coffee enthusiasts alike.

The result: a well‑timed menu pivot that proved a frothy cappuccino isn’t the only thing that can perk up the bottom line.