Tchibo returns to profitability as cost pressures ease

Tchibo currently operates 500 branded coffee shops across Germany | Photo credit: maxingvest

German coffee roaster and retailer Tchibo has returned to profitability following strong coffee sales across Europe last year. 
 

The Hamburg-based coffee group, owned by holding company maxingvest, posted €68m ($76m) EBIT for the 12 months ending 31 December 2023, compared to a loss of €167m ($186m) in 2022.  

ndicating an easing of supply chain volatility following the pandemic and Russia’s invasion of Ukraine, maxingvest cited lower raw material, energy and logistics costs as key to improved margins, with lower marketing and sales costs also contributing to profitability. 

Total 2023 revenues fell 1% to €3.2bn ($3.7bn), which was attributed to a fall in Tchibo’s non-food business, which comprises an alternating range of clothing, furniture, household items and electrical appliances. However, maxingvest reported stronger coffee sales across Tchibo’s café, wholesale and self-serve coffee machine segments – driven by a decline in remote working across Europe and a recovery in out-of-home coffee consumption. 

Tchibo currently operates 500 branded coffee shops across Germany and a further 320 across seven markets internationally. The coffee roaster’s portfolio of packaged coffee brands includes Tchibo, which it distributes across 60 markets globally, as well as Matthew Algie, Davidoff Café, Smokin’ Bean, Piacetto and Caffè Molinari.   

Despite ‘persistently high cost pressures’ and increasingly ‘price-sensitive consumers’, maxingvest forecasts Tchibo will achieve moderate sales growth in 2024, with EBIT expected to remain at 2023 levels.