Leading Italian coffee producers Lavazza, Massimo Zanetti Beverage Group and illycaffé have all reported positive results from 2017.
Turin-based Lavazza closed 2017 with a net profit of €4.7 million, which was not comparable with that of 2016 due to non-recurring positive effects of around €37 million, while EBITDA grew 12.5% to €200.8 million.
Consolidated revenues amounted to €2 billion, an increase of 6.3% over 2016, which is three times the market average. The growth was driven by foreign markets (primarily France, Germany, the UK and the US), which contributed to more than 63% of the turnover. Lavazza maintained the leadership position in its home market.
2018 will be a year of organic growth, mainly through international expansion and integration of brands purchased in recent years. Lavazza is looking into the capsule sector, but has no plans to open physical shops, preferring online sales. The company is targeting a turnover of €2.2 billion for 2021.
Massimo Zanetti Beverage Group
Meanwhile, Massimo Zanetti Beverage Group (MZBG) reported a 2017 turnover of €956.1 million (+4.2%) and a profit of €18.1 million (+8%).
It also published its Q1 2018 results, which saw a net profit of €2.8 million (+20.6%), EBITDA of €15.2 million (+9.4%) and revenues €211.2 million (-9.6%).
In the quarter, 30,600 tonnes of roasted coffee were sold (down from 30,900 tonnes in Q1 2017), due to a drop in the private-label (-2.6%) and mass market channels (-0.6%), while food service recorded a growth of +5.1%. In particular, the Asia-Pacific region reported significant growth (+10.7%).
For the full year, MZBG expects revenue growth of 2-4%, an increase in adjusted EBITDA of 5-8% and the reduction in net financial debt below €180 million.
illycaffé Figures
For its part, illycaffé reported a 2017 consolidated turnover of €467 million (+1.4%) and a net adjusted profit of €15.4 million (+1%). However, the highlight was the 4.2% growth in adjusted EBITDA, to a record €68 million.
Exports account for 65% of turnover, with a strong performance in the Americas and China (+16%). Online sales were up by 14%. Its international retail channel now consists of 244 stores, directly owned and franchised.
illycaffé's five-year strategic plan (2017-2022) targets a doubling of revenue for 2027. Novelties for 2018 include the launch of instant coffee in the UK, as well as Cold Brew (for millennials) and Arabica Selection in Italy.
Roasted coffee sales in the Italian retail channel were worth €1.19 billion in 2017, down by 0.6% in value and by 4.3% in volume compared to the previous year, according to a study by IRI.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: European Supermarket Magazine
