Lavazza Group has reported 17.6% year-on-year growth in turnover in its financial year 2022, driven by increased volumes in all geographical segments and the implementation of cost management measures.
The company added that its performance and profitability were in line with the previous year, despite the complex macroeconomic situation due to rising prices of green coffee, packaging materials, energy, gas, and logistics and freight services, as well as the appreciation of the US dollar.
The group navigated these challenges with price management measures, and close monitoring of operating costs.
It chose to absorb a substantial part of the increase in costs and pass only a portion of this on to consumers.
The company believes this decision increased sales in all geographical areas, with volume performance above the market and value performance in line with the previous year.
Antonio Baravalle, CEO of Lavazza Group said, "The 2022 results represent another milestone for our group. Despite the particularly challenging scenario, we have been successful in sustaining turnover growth and keeping margins in line with previous years.
"This was made possible by the huge commitment at all levels of the company to pursuing a strategy of international growth, combined with cost containment in an extremely complex situation."
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Group EBITDA amounted to €309 million, registering a slight decline from €312 million in 2021, while EBITDA margin was 11.4%.
Net profit for the financial year amounted to €95 million, down from €105 million in the previous financial year.
Both the at-home and out-of-home channels witnessed an increase in turnover in this period.
The beans segment continued to grow and reported a 1.4% increase in market share against 2021 in the 15 main geographical areas in which the group operates.
In the single serve segment (coffee capsules), Lavazza continued to implement its launch plan for aluminium capsules.
At a geographical level, the group reported value-based sell-out growth in the retail channel in Germany (+18.1%), the United States (+14.1%), and Poland (+28%).
Italy and France also reported growth of 1.5% and 6.1%, respectively.
© 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.