Starbucks, the apparently loss making in the UK coffee chain who last week offered to chip in £10mn corporation tax this year and next even though their accounts showed they made a loss, could have made £50mn profits last year, our calculator reports.
Reuters reports that Starbucks had sales of £1.2bn in the UK (link) over the last three years. The company does not split out individual territories in its accounts, someone on the internet told us.
So, dividing that Reuters £1.2bn by 3 for just last year, we get £400mn sales.
Starbucks has a group profit margin of 10.66% (according to this website - we have never heard of ycharts but Google ranks them highly) for the quarter to 30th September 2012.
Let's reduce that to 10% because it makes our calculations super easy.
On £400mn of sales, if profits are 10%, that means they made around £40mn profit in the UK.
Corporation tax is 20%, so 20% of £40mn is £8mn.
So £10mn per year is about right if their profit was actually £50mn.
[Play canned laughter here]
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