Italian coffee giant Lavazza generated revenue worth €3.1 billion in its financial year 2023, registering a 13% increase over 2022.
Lavazza witnessed growth despite rising raw material costs, particularly for Robusta coffee, and inflationary pressures that reduced consumer purchasing power and shrank the overall coffee market by 3%.
The company mitigated these challenges by implementing an affordable pricing strategy, which helped them maintain market share (0.3% increase) and grow sales in both home and away-from-home channels.
E-commerce sales were particularly strong, surging 28% year-over-year, the company added.
The beans segment was the most dynamic, with Lavazza gaining a 9.1% market share thanks to a 6.6% sales increase in the 15 main geographical areas the group operates in.
The single-serve capsule segment also saw healthy growth of 15.3% compared to 3% for the market, driven by the launch of the new NCC1 range.
Geographical Performance
Geographically, Lavazza experienced significant sales growth in the United States (+9.8%), Poland (+21%), and the UK (+8.6%). Their two biggest markets, Italy and France, also saw increases of 6.3% and 5.8%, respectively.
Lavazza's EBITDA and net profit declined to €263 million (from €309 million in 2022) and €68 million (from €95 million in 2022), respectively, due to its focus on price control and absorbing cost increases.
The company's net financial position was a negative €292 million at the end of 2023 due to the acquisition of MaxiCoffee in France, a move designed to strengthen Lavazza's international presence in the B2B and B2C e-commerce market for coffee and related products.
MaxiCoffee’s e-commerce platform offers 8,000 products across more than 350 different brands of coffee (beans, ground and capsules) and a wide range of machines.
“We will continue to look at the international market and evaluate strategic and synergistic investments that can contribute to our long-term development, implementing our competitive capacity and consolidating our presence in global markets," commented CEO of the Lavazza Group, Antonio Baravalle.
