Starbucks net income rises 18 per cent in fiscal Q2

Starbucks Corp saw its net income rise by 18 per cent in its fiscal second quarter, with more customers visiting its cafes in most parts of the world. The coffee giant also upped its forecast for the year on the better-than-expected results.

The stock of the Seattle-based company nevertheless slipped 5 per cent in after-market trading as sales weakened in parts of Europe.

For the quarter, Starbucks said yesterday that global revenue at cafes open at least a year were up by 7 per cent, with more customers and higher spending per visit. The figure is a key metric since it excludes the impact of newly opened or closed stores.

The gains were strongest in China and Asia Pacific, where the figure was up 18 per cent; the region is a critical expansion area for Starbucks. The company said by 2014, China would become its second largest market behind the US.

Revenue at cafes open at least a year were up 8 per cent in the Americas but retreated 1 per cent in the region encompassing Europe, Middle East, Russia and Africa.

According to chief financial officer Troy Alstead, the dip was largely the result of some regions of Europe being hit by economic turmoil. He said the company was ''not immune'' from high unemployment and fragile consumer confidence in the region.