illycaffè CEO Cristina Scocchia said the coffee roaster’s first quarter results allow the business to ‘look at the rest of the year with optimism’ | Photo credit: illycaffè

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Italy’s illycaffè has made strides in both its home market and the US, posting strong first quarter results despite higher costs, raw material volatility and the rise of the euro against the dollar.
 
Total revenues for Trieste-based coffee roaster and café chain grew 13.2% year-on-year during its first quarter. The growth was led by strong performances in Italy, where revenues grew 10.7% and the US, which saw a 27.7% year-on-year rise.
 
Revenue growth and improved operational efficiency also contributed to double-digit EBITDA growth compared to the same period in 2022.
 
Illycaffe’s strong performance in the US will be welcome news for the business’ CEO Cristina Scocchia, who has sought to strengthen the brand’s presence in key international markets, which she has previously described as “too fragmented”.
 
illycaffè sold a 20% stake in its business to US-based Rhône Capital in November 2020 in a bid boost its presence in the US and globally. It is also seeking to grow exponentially in the opportune Chinese market, which Scocchia has said could become the brand’s second largest market globally.
 
Illycaffè’s HoReCa segment also performed robustly during the period, achieving 26.3% revenues growth compared and boosted by increases in the number of clients and average consumption, the business reported.  
 
“We are very pleased with the results of the first trimester, which saw strong organic growth that outperformed the market, and an excellent increase in profitability. Our performance in this first trimester confirms the efficacy of the strategic initiatives adopted in 2022, both in terms of growth and operational efficiency, and allow us to look at the rest of the year with optimism,” said Cristina Scocchia, CEO, illycaffè.
 
In March 2023, illycaffè posted its strongest annual sales growth in ten years with 2022 revenues rising 14% year-on-year to reach €568m ($619m). 
 
Looking to the year ahead, illycaffè confirmed its full-year targets for 2023 and said it would focus on ‘organic growth and acceleration in profitability’.
 
Founded in Trieste in 1933, illycaffè is one of the world’s most prominent coffee roasters, with a presence within restaurants, hotels and offices in 140 countries worldwide. Additionally, the company currently operates 70 cafés across Europe and North America.