Starbucks 2013 Annual Report Download - page 36

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28
Channel Development
Fiscal Year Ended
Sep 29,
2013
Sep 30,
2012
Sep 29,
2013
Sep 30,
2012
As a % of Channel Development
Total Net Revenues
Total net revenues $ 1,420.7 $ 1,292.2 100.0% 100.0%
Cost of sales 878.4 827.6 61.8 % 64.0 %
Other operating expenses 201.2 191.1 14.2 % 14.8 %
Depreciation and amortization expenses 1.1 1.3 0.1 % 0.1 %
General and administrative expenses 21.1 17.0 1.5 % 1.3 %
Total operating expenses 1,101.8 1,037.0 77.6 % 80.3 %
Income from equity investees 96.6 85.2 6.8 % 6.6 %
Operating income $ 415.5 $ 340.4 29.2% 26.3%
Revenues
Channel Development total net revenues for fiscal 2013 increased $129 million, or 10%, primarily due to increased sales of
premium single serve products (approximately $116 million).
Operating Expenses
Cost of sales as a percentage of total net revenues decreased 220 basis points, primarily due to lower coffee costs
(approximately 250 basis points).
Other operating expenses as a percentage of total net revenues decreased 60 basis points, due primarily to lower marketing
expenditures (approximately 20 basis points) and increased sales leverage (approximately 20 basis points).
The above changes contributed to an increase in operating margin of 290 basis points over fiscal 2012.
All Other Segments
Fiscal Year Ended
Sep 29,
2013
Sep 30,
2012 % Change
Total net revenues $ 393.7 $ 208.6 88.7 %
Cost of sales 239.8 140.1 71.2 %
Store operating expenses 66.5 — 100.0 %
Other operating expenses 75.3 74.4 1.2 %
Depreciation and amortization expenses 11.7 2.5 368.0 %
General and administrative expenses 34.9 19.7 77.2 %
Total operating expenses 428.2 236.7 80.9 %
Income from equity investees — 0.7 (100.0)%
Operating loss $(34.5) $ (27.4) 25.9 %
All Other Segments includes Teavana, Seattle’s Best Coffee, Evolution Fresh, and Digital Ventures.
Total net revenues for All Other Segments increased $185 million, driven by incremental revenues from the acquisition of
Teavana in the second quarter of fiscal 2013 (approximately $156 million).
Total operating expenses increased $192 million, largely due to incremental expenses from the acquisition of Teavana.
2013 10-K
Starbucks Corporation Form