Massimo Zanetti Beverage reports 1Q revenues up 3% to 218 million euros
The net profit amounts to Euro 2.4 million
Massimo Zanetti Beverage Group S.p.A., one of the leading brands worldwide in the production, processing and marketing of roasted coffee (Segafredo), approved the Financial Report as at March 31st 2019.
Revenues reached 218 million euros, up 3 percent at current exchange rates but stable at constant rates between January and March.
Gross profit amounts to Euro 97.0 million, a Euro 3.8 million increase compared with the first quarter of 2018 (+4.1%). EBITDA amounts to Euro 17.2 million compared to Euro 15.2 million in the first quarter of 2018.
Operating income (EBIT) is equal to Euro 6.1 million compared to Euro 6.4 million of the first quarter of 2018. The net profit amounts to Euro 2.4 million, compared to Euro 2.8 million of the first quarter of 2018. In addition to what disclosed above, the decrease is mainly due to the increase in net financial charges linked to the IFRS 16 adoption (for Euro 0.3 million). However, net debt rose to 250 million euros at end-March after the effect of IFRS 16.
Massimo Zanetti, the Group’s chairman and chief executive officer, said: “The first quarter of 2019 closed with an increase in turnover of 3% at current exchange rates, thanks to growth in volumes in almost all geographical areas and a steady improvement in the product mix that enabled us to achieve growth in gross profit of 4%. In addition, during the quarter we completed the acquisition of the Australian company “The Bean Alliance”, which will open up new growth opportunities in APAC, and the Portuguese company “Cafés Nandi”, which will enable us to double the production capacity of the existing plant during 2019 to meet the growing European demand. We also launched new projects in other markets, in response to new trends and with an ever-increasing focus on sustainability: from the bio-compostable capsules, product of the year in France, to the renewed range of products Segafredo that will soon be available in the Italian market. Based on the current results and the outlook, together with the strategies implemented, we confirm our forecasts of profitability growth for the current year”.
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