Lavazza says strong 2019 results put the firm in a strong position to weather deep uncertainty caused by the coronavirus pandemic in the coming months
Lavazza's headquarters in Turin, Italy
In a press statement, the Turin-based firm announced an 18% year-on-year rise in revenues to €2.2bn in 2019. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 47% to €291m, with sales margins rising from to 13.2% in 2019 from 10.6% in 2018.
Lavazza also reported its Net Financial Position stood at positive €82m, up from €15m in 2018.
The strong annual results were announced shortly after the global roasting giant pledged €10m to support coronavirus relief and community services in its home region of Piedmont, Italy. Around half of the funds have been allocated to Piedmont’s legislative council for healthcare and social support, with around €3m allocated to Italian non-profit Specchio dei Tempi, which provides natural disaster support.
Lavazza’s robust results were driven by the integration of Mars’ single-serve Flavia and Klix freestanding vending machine businesses in the US, Germany, UK, France and Japan, which it
acquired for a reported US$650m in 2018. The roaster also benefitted from a partnership with beverage giant Pepsico, which saw the firms launch premium RTD coffee in the UK in mid-2019.
Commenting on the results, Lavazza CEO Antonio Baravalle, praised his firm’s performance and said the business was in a strong position to weather the coronavirus pandemic in hard-hit Italy and markets globally.
“The situation is today strongly conditioned by the ongoing health emergency, making it difficult to predict what will happen at macroeconomic level in the coming months,” he said.
“Following the spread of the coronavirus pandemic, we immediately introduced all the necessary measures to ensure the maximum possible safety of our employees, customers, suppliers and consumers.”
Baravalle added Lavazza’s Italian plants were operating “regularly” in full compliance with the government’s emergency coronavirus measures adding hopes that the actions of his firm and other Italian entrepreneurs would help the country return to “business and usual.”