Caffè Borbone confirms its strong performance with revenue up 28.6% in 1Q
Growth was also supported by an effective marketing strategy, headed by the launch of a new advertising campaign
The Board of Directors of Italmobiliare S.p.A. – the Pesenti's family investment holding company owner of a majority stake in Caffè Borbone, one of the top names on the national market and a leading supplier of capsules and pads – approved the additional quarterly financial disclosure as at and for the three months to March 31, 2019.
During the first quarter, Group consolidated revenue (130.8 million euro) rose by approximately 44% ytoy, mainly thanks to the contribution of Naples based Caffè Borbone.
Caffè Borbone closed the first quarter 2019 with revenue and other income of 42.4 million euro, an increase of 28.6% from the previous year. Gross operating profit was 12.3 million euro, margin on revenue over 29%, and operating profit was 10.2 million euro.
The strong growth trend reported in 2018 continued in the first quarter across all the main sales channels (specialist retailers, mass merchandising, web) and the entire product range (pods and capsules compatible with the main single-serve coffee machines), and was boosted by the launch of the line of capsules compatible with the “Dolce Gusto” system.
The continued development of the mass merchandising channel, which began in 2018, and expansion in the northern regions of Italy, where distribution has historically been less widespread, were particularly successful.
Growth was also supported by an effective marketing strategy, headed by the launch of a new advertising campaign with a celebrity support by Italian famous tv star Gerry Scotti.
The consolidated net financial position as of March 31, 2019 reflected debt of 39.8 million euro, an improvement of 11.4 million euro from the position as of December 31, 2018 (-51.2 million euro) mainly due to the sound generation of operating cash flows.
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