Starbucks reports record first quarter earnings for Fiscal 2012

Starbucks Corporation released its first quarter results on 26 January , reporting a record increase in net revenue to US$3.4 billion.  The figure represents a 16 per cent increase in total net revenues. Global comparable store sales increased 9 per cent, driven by a 7 per cent increase in traffic and a 2 per cent increase in average ticket, the company reported in a press release. Starbucks opened 241 net new stores globally, reaching 500 stores in both mainland China and Latin America. CPG revenue increased 72 per cent, driven by the launch of Starbucks- and Tazo-branded K-Cup packs and the impact of the Q2 FY11 transition of packaged coffee and tea to the direct distribution model. Over 100 million Starbucks- and Tazo-branded K-Cup packs shipped in Q1 following the 1 November launch. Earnings Per Share  increased 11 per cent to a record $0.50 per share, compared to $0.45 per share in Q1 FY11. “Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our CPG business,” Howard Schultz, Starbucks Chairman, President and CEO, says in a press release. “Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead,” Schultz added. “Our first quarter results demonstrate the fundamental strength of the Starbucks business and the powerful momentum we carried into fiscal 2012,” Commented Troy Alstead, CFO. “A very successful holiday season drove strong global same store sales, which, combined with continued operational efficiencies, delivered record results despite continued commodity cost pressures. We are well positioned to continue to drive strong revenue and profit growth throughout this year, and in years to come.” The results were for the quarter that ended 1 January 2012, presented under the new reporting segments, which were effective with the beginning of fiscal 2012.