The Belgian coffee roaster and services company achieved 83% sales growth in 2022 – but high inflation, rising commodity prices and ‘global instability’ generate uncertainty for the year ahead
Miko Group's net profits were negatively impacted by rising commodity prices and inflation | Photo credit: Miko Group
Miko Group has hailed its strong performance across Scandinavia and recent acquisitions as driving its strong 2022 revenues. However, rising costs driven by the war in Ukraine caused a sharp fall in profits.
The Turnhout-based coffee roaster and services company achieved 83% year-on-year sales growth to reach €267m ($290m), with its sales divisions across Sweden, Denmark and Norway highlighted as key performers.
Additionally, Miko Group cited the 2021 acquisition of Dutch workplace food and beverage vending company MAAS and Belgian coffee roaster SAS Koffie as lifting sales. Miko Group is planning to build a new roastery this year to ‘realise significant synergies’ between its Miko Koffie and SAS Koffie roasting operations.
However, Miko Group said net profits were negatively impacted by rising commodity prices and inflation following the war in Ukraine. Group EBIT fell 51% to €3.2m ($3.5m).
“Obviously, we are not euphoric about our results. The war in Ukraine has caused huge increases in raw material prices and an inflationary explosion. This plays hard in retail and private label, among others. Inflation remains high, commodities show no downward trend, wages had to be indexed in January. Covid is fortunately now behind us but due to the war in Ukraine and global instability, the environment in which we operate remains uncertain. It is impossible to formulate expectations,” said Frans Van Tilborg, CEO of the Miko Group.
In December 2022, Miko Group strengthened its out-of-home presence with the acquisition of the out-of-home business of Belgian coffee roaster Beyers Koffie.
“We are positive about our traditional out-of-home business, despite the competitive disadvantage that automatic Belgian indexation puts us at. After all, 80 % of our sales go abroad. In retail, we expect an increase in the private label segment. We are also pleased with the opportunity we were given to take over Beyers' outdoor activities,” Van Tilborg added.
Founded in 1801, Miko Group operates across 11 European countries, as well as Australia. It produces and packages the Miko Koffie, Puro FairTrade Coffee, Grand Milano Coffee and Freehand Coffee Roasters brands.