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A Lavazza stand at the French Open tennis tournament | Photo credit: Lavazza
Lavazza has hailed its ‘robust financial health’ after posting record 2023 revenues following strong performances across the business, particularly e-commerce and its recently acquired MaxiCoffee business. However, a strategic decision to absorb soaring green coffee costs rather than raise product prices saw annual net profits fall.
Turin-based Lavazza achieved 13% year-on-year sales growth in the 12 months ending 31 December 2023 to reach €3.1bn ($3.3bn). The Italian coffee roaster reported ‘stable, continuous growth’ in both its at-home and out-of-home channels – particularly e-commerce sales which grew 28% year-on-year.
Despite a successive year of rising green coffee costs, particularly for robusta, Lavazza said it limited product price increases to ‘protect consumers’ still grappling with the cost-of-living crisis. However, the strategy to absorb higher costs contributed to a 15% fall in group EBITDA to €263m ($284m) and a 28% decline in net profit to €68m ($73.5m).
“In 2023, the macroeconomic scenario for the industry was extremely complex, with prices at record levels for green coffee and robusta. Nevertheless, we chose to limit price increases on our products to protect consumers, maintaining volumes but sacrificing our profitability,” said Antonio Baravalle, CEO, Lavazza Group.
Baravalle said Lavazza Group’s strong financial position would enable the business to ‘seize major market opportunities and deliver growth through acquisitions’.
Lavazza acquired French coffee roaster, distributor and services supplier MaxiCoffee in March 2023 to grow its e-commerce and physical retail presence in France.
MaxiCoffee markets and distributes 8,000 coffee products, including espresso machines, coffee grinders and packaged coffee, from more than 350 brands via an e-commerce platform and 60 retail outlets. The Gardanne-based business also operates a roastery, coffee school and café.
“One of our strengths is our ability to diversify, pursuing a growth strategy that gives us a significant presence in various geographical areas and market sectors. We will continue to monitor the international market and look at strategic investments and synergies that can contribute to our long-term development,” Baravalle added.
Founded in 1895, Lavazza Group has a presence in more than 140 markets globally and operates nine manufacturing facilities across six countries. Alongside its eponymous Lavazza brand and MaxiCoffee, the group also operates the French Carte Noire retail packaged coffee brand, Danish coffee roaster Merrild and Canadian coffee roaster Kicking Horse.
