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.  
Indicating 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. 
 

Tchibo, which has been led by CEO Erik Hofstädter since December 2023, has pledged to source 100% of its coffee ‘responsibly’ by 2027. The German business is working with sustainability auditor Enveritas to assess its supply chain and measure progress on environmental, economic and social KPIs. It currently sources its coffee from approximately 75,000 small farmers across Guatemala, Honduras, Vietnam and Brazil, but reports just 20% is currently Fairtrade, Rainforest Alliance or USDA Organic Seal certified.   
 

The coffee roaster and retailer, alongside other major European coffee companies Lavazza, Löfbergs and Delta Cafès, has also stated its opposition to incoming EU deforestation laws (EUDR) which come into force at the end of 2024. International Coffee Partners (ICP), of which Tchibo is a member, has actively sought a delay of EUDR implementation to enable small holder coffee farmers to comply with the laws. 
 

Maxingvest, which also owns German skincare brand Beiersdorf, achieved 5% year-on-year group sales growth in 2023 to reach €12.6bn ($14.1bn), with total EBIT rising 29% to €1.1bn ($1.3bn).