The Italian coffee roaster’s 2022 revenues were lifted by international sales growth and pricing restraint – but higher costs for green coffee, packaging, freight alongside a strong dollar are likely to ‘significantly impact’ margins in the year ahead
Lavazza's net profit fell 9% to €95m ($104m), compared to €105m ($115m) last year | Photo credit: Max Nayman
Lavazza has credited increased sales and careful ‘cost containment’ for its positive 2022 results but cited high inflation and the current ‘complex macroeconomic scenario’ as likely headwinds for 2023.
Reporting on the 12 months to 31 December 2022, the Italian coffee roaster achieved 17.6% year-on-year revenue growth to reach €2.7bn ($2.9bn).
Lavazza said it had successfully kept margins in line with previous years despite ‘absorbing a substantial part’ of sharp price rises for green coffee, packaging materials, energy, logistics and freight services. The strong value of the dollar also adversely impacted margins, Lavazza added.
However, as a result of minimising product price increases, Lavazza reported ‘above the market trend’ volume performance, with sales growth achieved across all geographies in 2022.
Lavazza reported strong retail sales growth in Poland (28%), Germany (18%) and the US (14%). The coffee roaster also posted a 1.5% and 6.1% sales recovery in Italy and France respectively, following declines in both markets in 2021.
Lavazza also cited improved sales across both at-home and out-of-home channels last year, with a 26% increase in volumes in the latter segment strongly contributing to higher turnover growth.
The Turin-based coffee roaster said its wholebean segment proved to be ‘the most dynamic on the market’ in 2022, while its single serve channel remains the most competitive.
Group EBITDA fell 1% to €309m ($337m) compared to 2021 and net profit fell 9% to €95m ($104m), compared to €105m ($115m) last year.
“The 2022 results represent another milestone for our Group. Despite the particularly challenging scenario, we have been successful in sustaining turnover growth and keeping the margin in line with previous years. This was made possible by the huge commitment at all levels of the company to pursuing a strategy of international growth, combined with cost containment in an extremely complex situation. The focus is now on the exceptional cost increases seen during the year, which will also have a significant impact on 2023”, said Antonio Baravalle, CEO, Lavazza.
On 31 March 2023 Lavazza completed the acquisition of French coffee roaster, equipment and services supplier MaxiCoffee for an undisclosed sum.
MaxiCoffee has an annual turnover of approximately €300m ($327m) and operates an e-commerce platform alongside a network of 60 sales agencies across France, its École du Café coffee training academy.
“With this acquisition, we continue our strategy to expand internationally and strengthen the business in key markets. MaxiCoffee will have a totally separate and independent management, maintaining its successful business model intact,” Baravalle added.
Founded in 1895, Lavazza operates the French Carte Noire retail packaged coffee brand, Danish coffee roaster Merrild and Canadian coffee roaster Kicking Horse alongside its eponymous Lavazza brand.
The coffee roaster has a presence in 140 markets globally and operates nine manufacturing facilities across six countries.