Massimo Zanetti Posts Net Loss Of €17m In H1 2020
Roasted coffee producer and distributor Massimo Zanetti Beverage Group (MZBG) has reported a net loss of €17 million for the first half of its financial year, compared to a €3.4 million profit in H1 2019.
Revenues dropped 8.1% to €404 million (-10.8% on a comparable basis), due to a decline in the sale price of roasted coffee (-9.4%). This was partly offset by the increase of the roasted coffee sales volumes (+0.9%) and the favourable impact of foreign exchange rates.
The drop in the sale price of roasted coffee was, in turn, affected by the measures adopted worldwide to contain COVID-19.
Revenues from the company's foodservice channel were down 37.6% at constant FX (-38.9% on a comparable basis), while the mass market division saw a 10.6% increase at constant FX (+8.2% comparable).
Private-label revenues decreased 5.7% at constant FX (-8.6% comparable), the company added.
The Americas accounted for €202.7 million in revenue (+3.3% at constant exchange rates, -1.2% on a comparable basis), while Northern Europe generated €80.5 million (-7.8% at constant exchange rates).
Revenue in Southern Europe amounted to €82.5 million (-25.9% at constant exchange rates), while Asia Pacific and cafés accounted for €38.3 million (-19.9% on a comparable basis).
Roasted coffee sales volumes were equal to 62.7 thousand tonnes (+1.0% year-on-year, -5.2% on a comparable basis).
Impact Of COVID-19
According to chairman and CEO, Massimo Zanetti, the results were particularly affected by global measures aimed at containing the spread of COVID-19.
Most markets with significant exposure to the foodservice channel suffered an abrupt slowdown beginning in March, partly offset by an uptick in the mass market channel in all geographical areas.
The results reported by the company's foodservice division in June indicate a significant recovery, and this positive performance was also confirmed in July, with encouraging signs in various markets, the company said.
Besides producing, processing, and marketing roasted coffee, MZBG also sells professional coffee machines and complementary products, such as tea, cocoa, chocolate, and top-quality spices.
© 2020 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.