The 2021 results reported by Lavazza Group demonstrate the solidity of the company, the huge popularity of its products, and global recognition of its brand equity.
Lavazza Group has reported a turnover of € 2.308 billion, with key financial indicators on the rise and a positive channel and product mix. The macroeconomic scenario in 2022 looks set to be complex, due on the one hand to the Covid-19 pandemic and on the other to an inflationary spiral that is pushing up the cost of raw materials.
2021 saw the start of a particularly turbulent period for all commodities and, in the agricultural sector, coffee has faced the most significant price rises, with an increase of about 80% in 2021 for both Arabica and Robusta varieties. These increases are mainly due to global supply chain issues and damage caused by weather events linked to climate change. These factors will have an impact on 2022 production, with forecasts pointing to a reduced coffee harvest and the continuation of the inflationary environment, meaning that coffee prices will remain significantly higher.
“The excellent 2021 results are not only a significant milestone for our Group but also the springboard to tackle an extremely complex and challenging year, due to the rise in the price of all the raw materials we use – first and foremost green coffee, but also packaging, energy, logistics – and the risks deriving from the dramatic current geopolitical situation,” says Antonio Baravalle, Lavazza Group CEO.
The 2021 results reported by Lavazza Group demonstrate the solidity of the company, the huge popularity of its products, and global recognition of its brand equity. In 2021, against an economic and social backdrop still affected by several complexities caused by the Covid-19 health emergency, the Group reported turnover in excess of € 2.3 billion for the first time and improved results in all channels and geographical areas.
In 2021, the Group reported revenues up 11% on 2020, while the Net Financial Position is positive at € 283 million with operating cash flow standing at € 203 million, an improvement on 2020 (€ 125 million) and a confirmation of the Group’s excellent operating performance.
The main growth drivers are first of all sales recovery in the Out Of Home channel (back to 80% of the value reported in 2019), after the slowdown caused by Covid, and steadily rising revenues in the Home channel (+6.3% compared with 2020 and +23.8% with 2019), despite market trends being similar to pre-Covid levels.
At geographical level too, the Group reported sales growth and good performance across the board, both in more mature markets like Italy (+6%) and France (+10%), as well as in expanding ones like North America (+21%) and Germany (+14%), testifying to the health of the Group’s brands in all territories.
The product mix generated significant benefits thanks to the development of the Beans segment, which is the most dynamic on the market and where Lavazza reports sell-out growth at twice the average market rate (+16.9% Lavazza vs +8.5% market). In the increasingly competitive Single Serve segment (coffee machines and capsules), the Group continues to implement its launch plan for CO2-neutral aluminum capsules.