The Italian coffee roaster has reported increased sales in its key growth markets and a recovery in European café trade as contributing to 21% revenue growth in the first half of 2022
illycaffè considers the US and China as the markets with the highest potential | Photo credit: Aleksandar Andreev
Italian coffee roaster and café chain illycaffè has reported a 21% increase in revenues to €265m ($272m) for the first six months of 2022, with strong performances in its key growth markets in the US and China.
Revenues grew 34% in the US following a strengthened partnership with online retail giant Amazon, and a more general recovery in the US food service channel.
Global online channels achieved 11% growth, with China accounting for a 16% rise.
illycaffè outlined the US and China as key growth markets in its five-year growth plan, which runs until 2026. The two regions also drove sales growth in illycaffè’s at-home channel.
Additionally, illycaffè said that the gradual recovery in out-of-home consumption in Europe is continuing, prompting double-digit growth across hotel, restaurant and café trade compared to the first six months of 2021.
The Italian coffee roaster attributed new client acquisitions and an increase in average coffee consumption for its 30% rise in revenues in Italy.
The company said that profitability grew during the period but warned that cost pressures will remain for the second half of 2022, especially the increasing cost of raw material and logistics.
“Despite the exponential rise in the cost of raw materials and logistics, EBITDA saw an acceleration, fueled by a rise in revenue and a stronger operational efficiency, reflecting a strong strategic focus on long-term drivers of growth. Such results are a solid base to face a year that we expect to be complex and challenging, especially on the profitability front, due to the growing uncertainty and volatility related to the macroeconomic context and geopolitical tensions,” said Cristina Scocchia, CEO, illycaffè.
Founded in Trieste in 1933, illycaffè operates 70 cafés globally, and is served within restaurants, hotels and offices in over 140 countries worldwide.