illycaffè reports 17.4% revenue rise amid challenging 2022

Net profit increased 104.7% compared to 2020, although it remains nearly 30% less than 2019 | Photo credit: illycaffè

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Italian coffee roaster and café chain, illycaffè, has reported sales of €500m ($536m) in 2021, a 17.4% increase compared to the previous year, but highlights geo-political instability for its uncertain outlook.

Thanks to the recovery of hotel, restaurant and café businesses, the company registered an increase of 16.7% in revenues in its Italian home market compared to 2020, with 10.1% reported for the wider EMEA area, excluding Italy.

In the US, illycaffè reported growth of 38.7% across its main distribution channels, whilst the company’s online channel in China and South Korea is credited for growth of 17.8% in Asia.
Net profit of €11.9m ($12.8m) represents an increase of 104.7% compared to 2020, although it remains nearly 30% less than 2019.

However, Illycaffè said its outlook remains uncertain given current instabilities in Europe, increases in the prices of raw materials including green coffee, and rising logistical costs.

“The results for 2021, which saw turnover returning to pre-pandemic levels and improved profitability, are a solid starting point to take on the current year, whose macro-economic context is particularly challenging,” said Cristina Scocchia, CEO of illycaffè.

“In 2022 we will focus on profitable growth, driven by clear strategic choices and efficient resource allocation, with the goal of mitigating, to the extent possible, the negative impacts brought about by exogenous factors. We will focus even more in the distinctiveness of the illy brand, which has always been associated with superior and sustainable quality,” she added.