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CLARA MOSCHINI

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MZB Group 1H results hit by pandemic: revenue down 8.1% to €404m

Net result is equal to € -17.0m

The Board of Directors of Massimo Zanetti Beverage Group,  one of the leading brands worldwide in the production, processing and marketing of roasted coffee, listed on the Milan Stock Exchange, approved yesterday the First Half Report as at June 30, 2020. Volumes increased by 1.0% (-5.2% on a comparable basis) compared to the first half 2019. Revenues amounted to euro 404.0 million compared to euro 439.5 million of first half 2019, or an 8.1% decrease at current exchange rates , an 8.5% decrease at constant exchange rates and a 10.8% decrease on a comparable basis.

Gross profit reached euro 169.5 million compared to euro 196.5 million of the first half 2019 with the margin on revenues of 41.9% compared to 44.7% of the first half 2019. EBITDA adjusted amounts to Euro 14.7 million in the first half 2020, compared with Euro 35.7 million of the first half 2019. In addition to the factors commented on at the level of gross profit, this change was influenced by the positive impact of exchange rate fluctuations of Euro 0.1 million and by the decrease in operating costs of Euro 6.4 million. Adjusted EBITDA excludes non-recurring costs incurred, amounting to Euro 2.8 million (Euro 1.8 million in the first half of 2019). These costs are primarily related to efficiency projects in America as well as the accrual to the bad debt provision made exceptionally to take into account the likely impacts of potential credit loss due to the Covid19 pandemic.

Operating income (EBIT) is equal to Euro -12.4 million, a decrease of Euro 24.1 million compared to the first half of 2019. In addition to that disclosed about EBITDA, the decrease is attributable to the increase in amortization and depreciation, for Euro 2.1 million. Net result is equal to Euro -17.0 million in the first half 2020, a decrease of Euro 20.4 million compared to the first half of 2019.

Massimo Zanetti, Chairman and Chief Executive Officer of MZB Group, said: “The results for the first half of 2020 have been particularly affected by the global measures aimed at containing the spread of Covid-19. In particular, most markets with significant exposure to the Food Service channel suffered an abrupt slowdown beginning in March, partially offset by the uptrend in the Mass Market channel in all geographical areas. The results recorded by the Food Service channel in June indicate a significant recovery, and this positive performance was also confirmed in July, with encouraging signs in various markets.

In addition, I am proud to note that our sustainable, certified and organic products continue to deliver solid results and that the e-commerce channel is growing rapidly. At present, the impact on the performance of the year is still unclear, given the constantly-evolving context, and probably another couple of months will be necessary to get a clearer picture. Meanwhile, we are implementing all the initiatives necessary to preserve the Group’s solidity and carrying out cost containment actions in all geographical areas. I am convinced that it is in this environment of extreme discontinuity that the strengths of our company, which is at once global and local, and which has always harnessed and focused on the new tendencies and original habits in the various markets, will enable us to move quickly to identify new trends, such as sustainable products, and to create significant opportunities for improvement.”

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EFA News - European Food Agency
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