Lavazza, turnover drops and profit collapses in the year of the pandemic
Total 2020 revenues of € 2.085 billion (-5%), net profit € 73 million (-42%)
Losses in foodservice offset by growth in retail. The Roadmap to Zero has been announced, a plan that will lead the Group to completely neutralize its carbon footprint by 2030.
At 31 December 2020 Lavazza recorded revenues of € 2.085 billion, down from € 2.2 billion in 2019 (-5%). In terms of margins, at the end of 2020 the Group's Ebitda was € 253 million compared to € 291 million in 2019 (-13%). Net profit was € 73 million compared to € 127.4 million in 2019 (-42%), both due to the objective difficulties of a complex year but also in consideration of the Group's precise choice to continue investing, allocating resources in the safety and protection of people, awards to employees, donations to support communities, in sustainability projects, in Research and Development and in the improvement of IT systems and production capacity.
The Net Financial Position is positive for € 102 million (compared to 31 December 2019 when it was positive for € 82.1 million) with an operating cash generation of € 125 million in line with 2019.
The Group recorded a + 17.3% increase in revenues in the Retail channel, growing well above the market average in key markets and in all segments - Roast & Ground, Capsule, Beans. In particular, in the Beans segment, the most dynamic part of the sector, the positive trend is confirmed, with a performance of + 30.1%, 10 points higher than the reference market (+ 20.1%). Taking into consideration the 15 key markets, the Lavazza Group is positioned as a leader in the Beans segment, with a value share of 15.1%. Also geographically, the Group recorded excellent growth rates of the Retail channel in Germany (+ 35%), United States (+ 22%), United Kingdom (+ 15%), Russia (+ 30%), Poland (+ 10%) and the Group's leading markets - Italy and France - grew by more than + 7%.
The increase in the Retail channel partially offset the significant and inevitable contraction of the Out of Home business (Food Service -40%, Office Coffee Service -30%) generated by the blocking of movements, the closure of bars and restaurants and the reduced consumption in offices due to remote work. The decline in the sector is the result of an exceptional and unpredictable negative condition, which did not influence the Group's growth strategies in this segment as well.
Lavazza, on the occasion of the presentation of the financial statements, announced its "Roadmap to Zero", the ambitious plan that will lead the Group to the complete neutralization of its carbon footprint by 2030, with an investment, only for the two-year period 2020- 2021, of approximately 50 million euros. The Group therefore continues with determination in the process of integrating ESG criteria into its business, implementing an environmental sustainability strategy focused on carbon neutrality and circular economy, in line with the UN 2030 Agenda signed in 2017.
EFA News - European Food Agency