Roasted coffee producer and distributor Massimo Zanetti Beverage Group (MZBG) has reported a 1.0% year-on-year decline in consolidated revenue on a comparable basis, to €222.8 million, in the first quarter of its financial year.
However, the group posted a 2.3% growth in reported revenue at current exchange rates (+1.3% at constant exchange rates), it said.
Sales Volumes
The company attributed its performance to an 8.3% growth in sales volumes, a 1.0% increase in foreign exchange rates (+1.0%), and a 7.0% drop in the sales price of roasted coffee.
Coffee sales volumes grew by 9.6% to 34,100 tonnes (+3.6% on a like-for-like basis) during this period.
EBITDA for the period amounted to €12.9 million, down from €17.2 million in the first quarter of 2019.
Foodservice Slowdown
After a positive start in January and February, the company's foodservice channel experienced a sharp slowdown in its main markets (-12.5% in Q1), partially offset by growth in its mass market (+5.3%) and private-label (+7.0%) divisions.
Geographically, sales volumes in the Americas were up by 16.2% year-on-year, while Northern Europe saw a 0.9% growth.
Southern Europe witnessed a 0.9% decline in sales volume impacted by the performance of its foodservice channel in the Italian and Iberian regions.
The company's Asia, Pacific and Cafès divisions reported a 17.4% growth in sales volume (+6.8% on a comparable basis) compared with the same period last year, driven by positive performance in the mass market and private-label channels.
Highlights
MZBG coffee brand Kulta Katrina emerged as one of the leading brands in the Finnish market in terms of coffee volume production share in this period.
The result was achieved in a highly competitive market, as Finland has the highest per capita consumption of coffee in the world.
According to CEO Massimo Zanetti, the quarterly results were affected by measures taken at a national and global level to contain the health emergency caused by COVID-19.
Outlook
He added that, to date, the impact of the pandemic on full-year results is still limited, but it will be necessary to wait for another two or three months to get a clearer picture.
In the meantime, the group is implementing necessary measures to 'preserve solidity' as well as 'cost containment actions in all geographical areas'.
Due to the uncertainty around the duration of the restrictive measures in force, the management of MZBG has confirmed the decision taken on 23 April to suspend its financial guidance provided on 5 March.
© 2020 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.
