Starbucks 2012 Annual Report Download - page 38

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32
Other operating expenses as a percentage of total net revenues decreased 60 basis points. Excluding the impact of
company-operated store revenues, other operating expenses decreased 640 basis points, primarily driven by
operational efficiencies.
Income from equity investees declined to $0.3 million in fiscal 2012, due to the acquisition of the remaining
interest in our previous joint venture operations in Switzerland and Austria.
The above changes contributed to a decrease in operating margin of 290 basis points over the prior year.
China / Asia Pacific
Fiscal Year Ended
Sep 30,
2012
Oct 2,
2011
Sep 30,
2012
Oct 2,
2011
As a % of CAP
Total Net Revenues
Total net revenues $ 721.4 $ 552.3 100.0% 100.0%
Cost of sales including occupancy costs 362.8 282.0 50.3% 51.1%
Store operating expenses 119.2 83.4 16.5% 15.1%
Other operating expenses 47.0 35.7 6.5% 6.5%
Depreciation and amortization expenses 23.2 18.1 3.2% 3.3%
General and administrative expenses 38.1 32.9 5.3% 6.0%
Restructuring charges
—
—
—
—
Total operating expenses 590.3 452.1 81.8% 81.9%
Income from equity investees 122.4 92.9 17.0% 16.8%
Operating income $ 253.5 $ 193.1 35.1% 35.0%
Supplemental ratios as a % of related revenues:
Store operating expenses 24.4% 23.1%
Revenues
China / Asia Pacific total net revenues for fiscal 2012 increased 31%, or $169 million, primarily driven by
increased revenues from company-operated stores (contributing $128 million). The increase in company-operated
store revenues was primarily due to the opening of 154 net new stores over the past 12 months (approximately $71
million) and an increase in comparable store sales (approximately 15%, or $53 million).
Also contributing to the increase in revenues was an increase in licensed store revenues of $41 million, due to
increased royalty revenues from and product sales to licensees, primarily driven by 294 net new licensed store
openings over the past 12 months.
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues decreased 80 basis points primarily
driven by the accelerated growth of company-operated stores, which contribute a higher gross margin, in China
(approximately 140 basis points), partially offset by increased commodity costs (approximately 120 basis points),
mainly higher coffee costs.
Store operating expenses as a percentage of total net revenues increased 140 basis points. Store operating
expenses as a percentage of company-operated store revenues increased 130 basis points, primarily driven by
increased costs associated with the expansion efforts of company-operated stores in mainland China.
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