Italian coffee giant Massimo Zanetti Beverage Group (MZBG) closed the first half of its financial year with 51.6% year-on-year decline in net profit to €3.5 million.
The company has attributed the decline to the of implementation of the new IFRS 16 accounting standards and an increase in 'other financial charges'.
Operating profit amounted to €11.7 million during this period, down 16.9% year-on-year.
However, the coffee giant saw revenue growth of 1.2% to €439.5 million (-1.8% at constant exchange rates), and a 5.8% increase in EBITDA to €33.9 million.
Growth Drivers
Turnover increased mainly due to the positive trend in the price of raw materials, with the foodservice channel growing by 1.9%.
It was driven by the company's performance in the Asia-Pacific and the Americas, partially offset by a slight decrease in Europe.
Roasted coffee volumes sold by the distribution channel amounted to 62.1 million tonnes.
Divisional Performance
The Americas accounted for €193.8 million (-3.5% in constant currency) of the total revenue, followed by Southern Europe with €111.4 million (-6.2%).
Revenue in its Northern European operations amounted to €87.7 million (+0.4%), while Asia-Pacific and Cafes generated €46.6 million (+15.8%).
Commenting on the results, president and CEO, Massimo Zanetti, said that the progressive improvement of the product mix allowed the company to achieve a 2.7% growth in gross margin compared to the first half of 2018.
Outlook
Zanetti added, "Based on the current half year and in consideration of the prospects and development strategies undertaken, we confirm the expectations of growth in profitability for the current year."
MZBG produces and distributes a large number of well-known international and regional brands including Segafredo, MJB, San Marco and BonChoco.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
