Lavazza Group, one of the leading players in the global coffee industry, has reported its 2022 financial results, showcasing an impressive 17.6% increase in revenues, totaling €2.7 billion. Despite the complex macroeconomic scenario and the sharp rise in prices for green coffee, packaging materials, energy, gas, logistics and freight services, Lavazza Group’s careful cost management and increased sales helped to sustain its profitability in line with the previous year. In addition to its successful operational performance, the company has completed its acquisition of French coffee company MaxiCoffee, expanding its international presence and strengthening its position in key markets.
Key Takeaways:
- Lavazza Group’s 2022 revenues totalled €2.7 billion, representing a 17.6% increase on the previous year, due to increased volumes in all geographical areas and careful cost management.
- The company’s margin was supported by an increase in sales, close monitoring of operating costs, and the absorption of a substantial part of the increase in costs, which resulted in an increase in sales in all geographical areas.
- Lavazza Group has acquired French coffee company MaxiCoffee, which has a turnover of approximately €300 million, and targets both private individuals and businesses through its e-commerce platform, a network of 60 sales agencies across France, its École du Café, and its concept stores.
Positive Operational Performance Despite Economic Challenges
Despite the particularly complex macroeconomic scenario, Lavazza Group’s positive operational performance and profitability remained in line with the previous year. The appreciation of the US dollar, along with the sharp rise in the prices of green coffee, packaging materials, energy, gas, and logistics and freight services, posed significant challenges for the company. However, Lavazza Group’s increase in sales, careful list price management, and close monitoring of operating costs helped to support its margin.
In addition, the company’s decision to absorb a substantial part of the cost increases and pass only a portion on to consumers was rewarded with an increase in sales in all geographical areas, with volume performance above the market trend and value performance in line with last year. This commitment to international growth, combined with cost containment in a challenging situation, highlights Lavazza Group’s dedication to sustaining its turnover growth and profitability.
MaxiCoffee Acquisition Expands Lavazza Group’s International Presence
In addition to its successful operational performance, Lavazza Group has completed its acquisition of French coffee company MaxiCoffee, a strategic move to expand its international presence and strengthen its business in key markets. With around 1,500 collaborators, MaxiCoffee has a turnover of approximately €300 million and targets both private individuals and businesses through its e-commerce platform, network of sales agencies, École du Café, and concept stores.
The acquisition will provide Lavazza Group with access to a wider range of products, including 8,000 products from over 350 different coffee brands, beans, ground and capsules, and a wide range of espresso machines, coffee makers, coffee grinders and accessories. The acquisition also reflects Lavazza Group’s commitment to expanding its international reach and strengthening its position in the global coffee industry.
Continuing Commitment to ESG and Sustainability
Lavazza Group remains determined to integrate ESG criteria into its business model and continue its focus on sustainability. The company has drawn up a structured programme of activities designed to engage with the communities in which it operates and create shared value, generating a positive social, economic, and environmental impact. Lavazza Group is also committed to combating climate change by implementing the “Roadmap to Zero” strategy to reduce and offset emissions.
The company’s Sustainable Packaging Roadmap aims to make the entire packaging portfolio reusable, recyclable, or compostable by 2025. Lavazza Group plans to publish its Sustainability Report on a voluntary basis in June, which analyses the impacts of the company’s activities and identifies priority sustainability pillars, including gender equality, decent work and economic growth, responsible consumption and production, and climate action.
In 2022, Lavazza Group continued its Gap Free program, a journey of cultural transformation aimed at promoting equal opportunities and breaking down all barriers. The company’s final goal is to eliminate all forms of discrimination and create an inclusive organization where everyone can express their real identity. Lavazza Group obtained first-level EDGE certification in Italy (Economic Dividends for Gender Equality) in early 2023.
Tax Compliance and Risk Management
In addition to its commitment to sustainability, Lavazza Group has been recognized for its tax compliance processes, rooted in its Code of Ethics and Tax Strategy. The company was granted Collaborative Compliance status by the Tax Authorities on December 28, 2022, with effect from 2021, which recognizes the positive assessment of the internal tax risk management and monitoring system. Lavazza Group’s focus on tax compliance and risk management reflects its commitment to ethical business practices and responsible corporate governance.
Looking Forward
Lavazza Group’s 2022 financial results demonstrate the company’s ability to navigate a challenging economic environment and sustain its growth and profitability. The acquisition of MaxiCoffee reflects the company’s commitment to expanding its international presence and strengthening its position in the global coffee industry. Lavazza Group’s focus on sustainability, ESG, tax compliance, and risk management further reinforces its commitment to ethical business practices and responsible corporate governance.
As Lavazza Group looks towards the future, it remains focused on the exceptional cost increases seen during the year, which will also have a significant impact on 2023. The company’s commitment to international growth, cost containment, and sustainability will continue to guide its business strategy, as it seeks to offer the best coffee possible, in all forms, by focusing on every aspect of the supply chain. With its dedication to ethical business practices and responsible corporate governance, Lavazza Group is well-positioned to continue its remarkable success story and create sustainable value for shareholders, collaborators, consumers, and the communities in which it operates.
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