Italy's illycaffè has reported an 18.9% year-on-year increase in net profit to €14.2 million in its financial year 2022.
The company generated an EBITDA of €71.4 million, registering a 15.8% increase compared to the previous financial year.
Consolidated revenue saw its highest growth rate in ten years of 13.6% during the year amid an uncertain and complex macroeconomic environment.
It amounted to €567.7 million and the company attributed the results to good performance across all markets and distribution channels.
The growth in revenue and the increased operating efficiency of the group made it possible to offset the pressure on margins dictated by the inflationary environment, the company added.
Cristina Scocchia, chief executive office of illycaffè commented, "We are thrilled to have achieved the best results in the last ten years in spite of the challenging macro-economic context. 2022 marked a major milestone towards the achievement of our strategic goals: this year all markets and all distribution channels contributed to our growth, in terms of both revenue and EBITDA.
"These results underscore the solidity of the strategic direction we have taken. Thanks to its superior sustainable quality, illy coffee is one of the crown jewels of the Italian export sector, and we intend to continue to build on this strength by further accelerating our growth on international markets."
Divisional Performance
Revenue in Italy grew by 9.9% compared to 2021, driven by growth across all distribution channels.
The HoReCa channel saw double-digit growth in revenue of 30.9% year-on-year due to an acceleration in new client acquisition in the premium segment of the market.
In the United States, revenue increased 27.4% year on year boosted by a positive performance in all the main distribution channels and a stronger dollar, leading to a favourable exchange rate.
The other markets in which the group has a presence also saw strong growth compared to 2021, particularly China, where revenue grew by 15% compared to 2021, led by online sales.
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The company's retail segment saw revenue growth of 42.8% year on year. As of 31 December, illycaffè's retail network comprised 190 outlets in 34 countries.
Its modern distribution channel saw a 4.8% increase in revenue compared to 2021, driven by a larger distribution footprint, especially in the United States.
In the online channel, revenue grew by 3.2% compared to the previous finanial year as the company consolidated its partnerships with e-retailers.
Outlook
In 2023, the group hopes to continue to perform as per its 2022-26 strategic plan, which focuses on further accelerating its international development in the super-premium market segment.
The beverage firm aims to invest around €270 million to achieve these goals. Out of the total, it will allocate €120 million for expanding its production and logistics facilities in Trieste - the group's strategic production hub – and focusing on the critical phases of the production process.
© 2023 European Supermarket Magazine – your source for the latest A Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
