Italian coffee roaster maintains strong financial position despite Covid-19 disruption over the last 12 months and pledges to leverage profitability to become a more sustainable company
Lavazza Group's headquarters in Turin, Italy | Photo credit: Lavazza Group
Lavazza Group has pledged to step up its sustainability commitments after emerging in a strong position following months of Covid-19 disruption.
Announcing its full-year results for 2020, the Turin-based company reported revenues of nearly €2.1bn ($2.5bn), a 5% reduction on the €2.2bn generated in 2019. Net profit fell 34% to €73m compared to €127.4m earned in 2019.
Reflecting the global at-home coffee boom amid the pandemic, Lavazza said revenues across its retail channels, encompassing roast & ground, capsules and coffee beans, rose 17.3%. Meanwhile the group’s out-of-home channels, including its foodservice and office coffee businesses, suffered 40% and 30% sales declines respectively amid widespread temporary café closures and increased home working.
“2020 got off to a very good start and then the outbreak of the pandemic changed everything,” said Antonio Baravalle, Lavazza Group CEO. “We are satisfied with the results achieved despite the complexity of the period, with a slight downturn in revenues, cash generation substantially in line with 2019, and a positive net financial position. Our growth was well above the market average in both the retail channel and our main geographical areas.”
Despite significant disruption to its out-of-home channels, Lavazza said it would spend €50m to promote sustainability practices over the coming year. Announcing its ‘Roadmap to Zero’ plan, Lavazza pledged to attain carbon neutrality by 2030 by offsetting indirect emissions from all aspects of its supply chains.
Lavazza said it had already achieved zero impact from direct carbon emissions generated by all company activities, including production facilities, offices, flagship stores and corporate vehicles and from indirect emissions generated by energy consumption.
The company also pledged a further €2.5m to support local communities in Italy and abroad, in addition to the €10m healthcare and community support it allocated
for Italy’s Piedmont region in March 2020.