Italian coffee company illycaffè achieved revenue growth of 5.7% at constant exchange rates (up 4.8% at current exchange rates) to €595.1 million in its financial year 2023.
This growth was driven by all major markets, with the United States – a strategic priority for illycaffè – witnessing particularly strong revenue growth of 15.1% at constant exchange rates, driven by online sales.
Profitability accelerated significantly, with adjusted EBITDA increasing by 18.6% to €92.8 million and net profit surging by 67.2% to €23.7 million. The EBITDA margin improved by 1.8 percentage points to 15.6%.
Growth was fuelled by strong performances in both the HoReCa channel (+8.2%) and the online channel (+15.5%), particularly in the US, Italy, and China.
Sustainability Committment
Illycaffè remains committed to sustainability throughout its value chain, promoting regenerative agriculture practices and responsible resource management, including initiatives focused on capsule recovery and recycling.
To celebrate International Coffee Day, illycaffè launched Arabica Selection Brasile Cerrado Mineiro, the world's first coffee sourced entirely from regenerative agriculture on 1 October 2023.
Cristina Scocchia, CEO of illycaffè, commented, "We are very satisfied that the strategic direction undertaken is bringing the expected results in terms of sustainable and profitable growth.
"To support future development plans, we have launched a significant investment programme to support innovation and multi-channel growth. In particular, we have allocated €120 million to double the production capacity of our strategic site in Trieste."
Despite a challenging economic and geopolitical environment, Illycaffè anticipates further revenue and profit growth in 2024.
Elsewhere, Lavazza generated revenue worth €3.1 billion in its financial year 2023, registering a 13% increase over 2022.
It witnessed growth despite rising raw material costs, particularly for Robusta coffee, and inflationary pressures that reduced consumer purchasing power and shrank the overall coffee market by 3%.
