Italian coffee maker Lavazza expects revenue to rebound this year, reaching at least the €2.2 billion ($2.58 billion) it achieved in 2019, and continues to look for M&A opportunities, its CEO has said.
Last year the family-owned company recorded sales worth €2.085 billion as its retail business only partly compensated for a drop in out-of-home coffee consumption.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at €253 million in 2020, down 13% on 2019.
The group also wants to bring EBITDA back to the level reached in 2019 or just below it, CEO Antonio Baravalle told an online news conference.
Despite the negative impact of the pandemic on coffee consumption in bars, restaurants and offices, the group ended 2020 with a positive net financial position of €102 million.
"If we see M&A opportunities we will try to seize them, albeit with great attention to the economic and financial aspects," said Baravalle, adding the group did not have any concrete acquisition plans on the table at the moment.
The pandemic did not stop investments at the group, the CEO said, adding the coffee maker would spend a total of €50 million in 2020-2021 period to reduce its carbon footprint and reach carbon neutrality by 2030.
The next step will be to make all of its packaging reusable, recyclable or compostable by 2025.
The Turin-based group is not planning a bourse listing at the moment as it makes the financial resources it needs and its shareholders are not looking for an exit strategy, the CEO said.
Baravalle also said he hoped sales in restaurants and bars and coffee consumption in offices would recover gradually, adding the group did not plan to change its long-term strategy to expand in all the three businesses.