The coffee roaster, catering and vending services specialist says the European out-of-home coffee market is performing strongly despite the war in Ukraine, inflation, Brexit and sustained high rates of remote working putting the segment ‘under pressure’
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Miko Group CEO Frans Van Tilborg (pictured) said Europe’s out-of-home coffee market has a ‘postive outlook’ despite the challenges of inflation and remote working | Photo credit: Miko Group
Miko Group has reported broadly positive half-year trading in Europe after a turbulent 2022, when
strong sales were overshadowed by high inflation and disruption from the war in Ukraine – resulting in a 51% decline in group Group EBIT to €3.2m ($3.4m).
The Belgian coffee roaster, catering services and vending provider achieved €143.4m ($152.8m) sales and a €0.8m ($0.85m) profit, marking a turnaround from the €0.6m loss posted for the same period a year ago.
In a press release, Miko credited the strength of the European out-of-home coffee market, where it provides catering and vending services across 12 countries.
Nevertheless, wage inflation in Belgium, where Miko’s coffee is roasted and packaged, the weakening of the Norwegian and Swedish Krone and the negative impact of Brexit on the UK market all continue to present challenges.
Miko said its out-of-home division remains ‘under pressure’ due to the sustained remote working trend across Europe. Retail packaged coffee sales also remain ‘difficult’ as supermarkets pass on higher commodity costs to consumers.
“We see our importance in the out-of-home market continuing to grow, not only in euros, but also in volume. We are pleased that we are meeting this challenge in a market that remains a victim of the popularity of working from home. The fact that we have already invested €9.2m in coffee machines, the engine of this division, confirms our positive outlook,” said Miko Group CEO, Frans Van Tilborg.
Miko has made several prominent acquisitions over the last three years as it seeks to strengthen its position in key European markets. In July 2021 it
acquired a 92% stake in Dutch workplace food and beverage vending company MAAS and fully
acquired fellow Belgian coffee roaster SAS for €1.9m ($2m) in November 2022.
In December 2022, Miko acquired
Beyers Koffie's Belgian out-of-home business unit before snapping up German coffee vending machine operator
Procon GmbH for an undisclosed sum in May 2023.
Founded in 1801, Miko Group operates across 12 European countries, as well as Australia. It produces and packages the Miko Koffie, Puro FairTrade Coffee, Grand Milano Coffee and Freehand Coffee Roasters brands.