Italian coffee manufacturer Lavazza Group has reported consolidated revenues of €1.9 billion for 2016, up 29% on the previous year.
The company attributed 4% of this increase to organic growth, such as last year’s acquisition of Carte Noire.
The contribution of foreign markets climbed to 60.3% of turnover (up from 52.8% in 2015), driven particularly by France, which after the Carte Noire deal has become the second-largest market for the group after Italy, accounting for 20% of its total revenues in 2016.
Ahead Of The Market
Although coffee consumption declined for the third consecutive year in Italy, Lavazza maintained its leading position, increasing its share by value to 41%.
Last year’s profit of €82.2 million is not comparable with 2015 results, which benefited from a capital gain of €822.8 million generated by the sale of the equity invested in Keurig Green Mountain.
Following the acquisition of Carte Noire, Lavazza has invested €16 million in its French production plant in Lavérune, to make it more modern and open to future developments involving hi-tech production lines.
Plans for 2017, according to Lavazza CEO Antonio Baravalle, foresee the completion of the integration with Carte Noire, in order to become a leading player in the global coffee market, while retaining its identity as an Italian premium producer. He expects revenues to reach €2.2 billion in 2020.
© 2017 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