Record 2019 results for Lavazza thanks also to Mars Drink
Revenues + 18% and + 45% net profit, 2020 uncertain but "the Group is solid"
The Board of Directors of Lavazza Group has examined and approved the draft Annual and Consolidated Financial Statements at December 31, 2019, prepared in accordance with International Financial Reporting Standards (IFRS).
Consolidated revenues stand at €2.2 billion, an increase of +18% on €1.87 billion the previous year, with 70% of turnover generated on international markets. This growth is the result of both the integration of Mars Drink acquired on December 2018 (today Lavazza Professional) and positive business performance reported across the Group (+3.9% by volume), with double-digit growth in North America (+15.2%), Northern Europe (+13%) and Eastern Europe (+23%), mainly in Russian and Poland.
In 2019, Lavazza Group reported growth across all channels, on an organic basis, and particularly in the Single Serve (+5.2% by volume) and Roast & Ground (+3.8%) segments. Lavazza also entered the ready-to-drink market, which is reporting significant global growth, through a partnership agreement signed with PepsiCo that taps into a younger target and new forms of consumption with a premium, high-quality product. First launched in the United Kingdom, in 2020 the Lavazza ready-to-drink range will be launched in other areas of Europe too.
Lavazza Group EBITDA stands at €290.6 million, a rise of +47% on €197.3 million the previous year, with an EBITDA margin of 13.2% (10.6% in 2018). The operating result (EBIT) stands at €156.0 million, up +41% on €110.7 million in 2018, with an EBIT margin of 7.1% (5.9% in 2018). Net profit of €127.4 million represents +45% growth on €87.9 million in 2018.
The Net Financial Position stands at a positive €82.1 million against €15.0 million in 2018, driven by positive cash generation despite the negative effect deriving from the application of the IFRS16 - Leases accounting standard.
Antonio Baravalle, Lavazza Group CEO, commented: “2019 closed with very positive results and all indicators reporting an upward trend in terms of both revenues and margins. All this has been made possible by excellent performance reported in all business segments and the full integration of Lavazza Professional. These results confirm the effectiveness of our business model and our strategy, driving growth even against the backdrop of a shrinking market”.
Turning to 2020, “the situation today is strongly conditioned by the ongoing health emergency, making it difficult to predict what will happen at macroeconomic level in the coming months. We are tackling this unprecedented situation of uncertainty with a proactive, concrete approach and from the position of strength that derives from the results reported for the recently closed financial year and from the Group’s solid capital structure,” commented Baravalle. “Following the spread of the coronavirus pandemic, we immediately introduced all the necessary measures to ensure the maximum possible safety of our employees, customers, suppliers and consumers. We are confident that the concrete and prompt action taken by our Group and many other Italian entrepreneurs and businesses will allow Italy to return to business as usual”.
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