The Italian coffee roaster says increased raw materials and energy costs have adversely impacted profits in 2022, but coffee pod sales continue to perform well
Caffè Borbone achieved third quarter revenue growth of 2.5% to reach €58.9m | Photo credit: Caffè Borbone
Caffè Borbone’s gross operating profit has dropped 28% this year, despite sales growth of 3% and the strong performance of its coffee pod and capsule business.
The Napoli-based coffee roaster reported profits of €48.2m ($50m) for the first nine months of 2022, 28% less than the same period in 2021.
The company said a fall in profits was likely given heightened domestic coffee consumption during the pandemic had tapered off. However, profits have been further hampered by rising cost of raw materials, energy and transportation this year.
Caffè Borbone is one of Italy’s leading producers of coffee in compostable pods and compatible capsules.
The company said its single-dose coffee products continue to perform well, climbing to second place on a ranking of single-dose coffee sales in the large-scale retail channel. This was the first time Caffè Borbone had been placed above Swiss food and beverage giant Nestlé.
Caffè Borbone achieved third quarter revenue growth of 2.5% in the three months ended 30 September 2022 to reach €58.9m ($61m).
For the first nine months of 2022, the company’s revenues reached €192.9m ($201m), representing 3% sales growth compared to the same period in 2021.
The coffee roaster also reported 40% international sales growth this year, citing global channels as ‘increasingly strategic for the company’s future prospects’. However, Caffè Borbone did not disclose the international channel’s contribution to revenues.
Italian investment holding company Italmobiliare has a 60% stake in Caffè Borbone. Its board of directors said the coffee roaster had been the driving force in its revenue growth during the pandemic, when sales exceeded €250m ($255m).
Italmobiliare reported a 22% increase in overall revenues for the nine months ending 30 September 2022 to €1.3bn ($1.35). The company also operates food companies Capitella and Callmewine, and counts Italian energy companies Italgen and AGN Energia among its portfolio of 11 brands.