Turin, Italy (March 28th, 2018) – The Lavazza Board of Directors has examined and approved the draft Financial Statements and the Consolidated Financial Statements as of December 31, 2017, prepared according to Italian accounting principles (ITA GAAP).
“In 2017, our brand continued to grow stronger, with an increasingly international presence and revenue growth of 6.3%, three times the market average. All this has been made possible by significant investments and action to improve the competitiveness of our offering, both of which are fundamental for the Group’s long term financial sustainability,” comments Lavazza CEO Antonio Baravalle. “In 2017, as well as completing the integration of the Merrild and Carte Noire brands, the company also acquired Kicking Horse Coffee, ESP and Nims, another three profitable growth accelerators. Lavazza was also included as one of the top 100 brands in the annual Global RepTrak® 2018 ranking of the companies with the best reputation worldwide. In 2018, there will be a strong focus on the Group’s organic growth, consistent with the guidelines set out in the strategic plan: internationalization, brand strengthening, and further expansion of the operating margin.”
Consolidated revenues of €2.0 billion are up 6.3% over the €1.9 billion from the previous year. This result is attributable to expansion in key countries: France (the Group’s second largest market), Germany, the United Kingdom and the United States, where there was sustained growth in terms of both value and market share.
In Italy, which represents about 37% of total revenues, Lavazza has maintained its position of leadership. The product portfolio and the clear strategy of segmenting the offering according to the various types of customer have allowed the Group to present important novelties to the market in all channels, in line with consumption trends.
In 2017, Lavazza completed some major foreign acquisitions. In May, it acquired Kicking Horse Coffee, a leading Canadian organic coffee company and a local jewel that has further consolidated the brand’s premium positioning and accelerated growth in North America. Then in September, the acquisition of French company ESP (Espresso Service Proximité) was completed, allowing Lavazza to strengthen its presence in the out-of-home segment of a key market within the company’s current internationalization strategy. Finally, in October 2017, the Group acquired Nims, an Italian door-to-door distributor and vendor of coffee in capsules and coffee machines, consolidating Lavazza’s business in the portioned segment in Italy.
EBITDA at €200.8 million rose 12.5% on €178.5 million reported the previous year, with an EBITDA margin standing at 10% (against 9.4% in 2016).
The operating result (EBIT) stands at €67.0 million, a rise of 8.5% on €61.7 million in 2016.
Net profit in 2017 stands at €44.7 million and is not comparable to the 2016 result, which benefited from non-recurring positive items totaling about €37 million.
The net financial position stands at €457.7 million, against €687.5 million as of December 31, 2016, as a result of the acquisitions concluded during the financial year 2017.