Italian coffee maker Lavazza said on Wednesday it expected a challenging 2022 due to raw material price rises after reporting a strong increase in profits for 2021.
The family-owned company said it had decided to suspend all its activities in Russia and has also had to temporarily halt distribution in Ukraine.
The company said last year that it expects revenue to rebound in 2021, reaching at least the €2.2 billion ($2.58 billion) it achieved in 2019, and continues to look for M&A opportunities.
Lavazza said it would have to tackle 'an extremely complex and challenging' 2022, due to the rise in the prices of raw materials.
"First and foremost green coffee, but also packaging, energy, logistics - and the risks deriving from the dramatic current geopolitical situation,” chief executive Antonio Baravalle said.
The price increases were mainly due to global supply chain issues and damage caused by weather events, the Turin-based group added.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at €312 million ($337.93 million) in 2021, up 23.3% on 2020.
Revenues increased 11% to €2.3 billion last year, also thanks to a recovery in the 'out of home' channel after the slowdown caused by the COVID-19 epidemic, when lockdowns kept people at home.
In September of last year, the italian coffee producer and distributor launched new Nespresso-compatible capsules with zero C02 impact.
The company said its first carbon-neutral range is dedicated to the retail sector, and aims to help neutralise the impact of carbon dioxide by offsetting emissions.
News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.