Lavazza Group Reports Record Revenue Of Over €3 Billion In 2023

The Board of Directors of Lavazza Group has approved the Consolidated Financial Statements for the year ending on December 31, 2023. Despite facing challenges in the macroeconomic scenario, including increasing raw material costs, Lavazza Group managed to achieve record revenues of over three billion euros. CEO Antonio Baravalle highlighted the company's ability to diversify and pursue a growth strategy that has resulted in a significant presence in different geographical areas and market sectors. The company aims to continue monitoring the international market, exploring strategic investments and synergies to support long-term development and consolidate its position in global markets.

In 2023, Lavazza Group faced major challenges due to rising coffee costs, particularly Robusta, which reached record levels. The inflationary environment eroded consumers' purchasing power and led to a contraction of about 3% in the coffee market. Despite these difficulties, Lavazza Group maintained an affordable pricing strategy to protect consumers and preserve its customer base. The company also invested to ensure its long-term prospects and achieved an increase in market share.

Lavazza Group reported revenues of €3.1 billion in 2023, a 13% increase compared to the previous year. The acquisition of MaxiCoffee contributed to this result and strengthened the company's international presence. Turnover showed continuous growth, particularly in the Home and Out-Of-Home channels, with ecommerce experiencing a significant 28% growth compared to 2022. The Beans segment was the most dynamic in the market, with a 6.6% increase and a gain in market share. In the Single Serve (capsules) segment, Lavazza Group achieved value growth of 15.3% compared to the market's 3% growth, resulting in a gain in market share.

Geographically, Lavazza Group reported sell-out growth in the Retail channel across all markets, notably in the United States, Poland, and the UK. Italy and France, the company's most important markets, also recorded increases. However, the company's EBITDA decreased from €309 million in 2022 to €263 million in 2023, with an EBITDA margin of 8.6% compared to 11.4% in the previous year. The strategy to limit consumer price increases affected the company's margins. EBIT amounted to €97 million, falling from €160 million in 2022, and the net profit totaled €68 million.

Lavazza Group continued to invest in its long-term prospects, exemplified by the acquisition of MaxiCoffee in France. MaxiCoffee operates through an e-commerce platform, commercial agencies, Écoles du Café, and concept stores, offering a wide range of coffee products and accessories. The acquisition strengthened Lavazza Group's international presence and supports the company's growth strategy through strategic investments.

Looking ahead to 2024, Lavazza Group aims to address current difficulties and focus on recovering gross operating margin. The company relies on its solid consumer and customer base, as well as effective financial and operational management. Lavazza Group also emphasizes the importance of human capital and will continue to invest in fostering a positive and inclusive working environment. The company recognized the impact of inflation on its employees and implemented a broad-based salary review. Lavazza Group is committed to promoting diversity, equity, and inclusion through its Gap Free program.

In terms of sustainability, Lavazza Group integrates ESG principles into its business model. The company plans to publish its tenth Sustainability Report in June 2024, following the standards of the Global Reporting Initiative. Lavazza Group also opened the first "Center for Circular Economy in Coffee" in Turin in 2023. This initiative, supported by the Lavazza Foundation and a global network of partners, aims to accelerate the sustainable transition and promote the principles of the circular economy in the coffee industry.