The Lavazza Group reported consolidated revenues of €2.2 billion (about US$2.4 billion) for 2019, an increase of 18 per cent over the previous year.
Lavazza Group earnings before interest, taxes, depreciation, and amortisation stands at €290.6 million (US$322.8 million), a rise of 47 per cent on 2018. Its operating result stands at €156 million (US$173 million), up 41 per cent on the year prior.
Net profit of €127.4 million (US$141.6 million) represents 45 per cent growth over 2018’s profit of €87.9 million (US$97.7 million).
“2019 closed with very positive results and all indicators reporting an upward trend in terms of both revenues and margins,” Lavazza Group CEO Antonio Baravalle says.
“All this has been made possible by excellent performance reported in all business segments and the full integration of Lavazza Professional. These results confirm the effectiveness of our business model and our strategy, driving growth even against the backdrop of a shrinking market.”
Seventy per cent of turnover was generated in international markets. Double-digit growth was experienced in North America at 15.2 per cent, Northern Europe – at 13 per cent, and Eastern Europe at 23 per cent. The latter came mainly from Russian and Poland.
In 2019, Lavazza Group reported growth across all channels, on an organic basis, and particularly in the Single Serve – 5.2 per cent by volume – and Roast & Ground – 3.8 per cent – segments.
Lavazza also entered the ready-to-drink market, which is reporting significant global growth, through a partnership agreement signed with PepsiCo that taps into a younger target and new forms of consumption with a premium, high-quality product. First launched in the United Kingdom, in 2020 the Lavazza ready-to-drink range will be launched in other areas of Europe too.
In addition to the good economic and financial results, 2019 saw Lavazza in 38th place in the Global RepTrak ranking of the world’s 100 most reputable brands. In the same study addressed to Corporate Responsibility, Lavazza is one of the top ten companies globally and leads the field in Italy and the world in the Food sector.
Turning to 2020, “the situation today is strongly conditioned by the ongoing health emergency, making it difficult to predict what will happen at macroeconomic level in the coming months. We are tackling this unprecedented situation of uncertainty with a proactive, concrete approach and from the position of strength that derives from the results reported for the recently closed financial year and from the Group’s solid capital structure,” Baravalle says.
“Following the spread of the coronavirus pandemic, we immediately introduced all the necessary measures to ensure the maximum possible safety of our employees, customers, suppliers, and consumers. We are confident that the concrete and prompt action taken by our Group and many other Italian entrepreneurs and businesses will allow Italy to return to business as usual.”