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Lavazza has boosted turnover by 17.6% to €2.7bn as the coffee products group kept a lid on price rises and increased volumes across all the markets in which it operates.
Soaring costs of green coffee, packaging, energy, logistics and freight saw EBITDA fall slightly in 2022 to €309m, compared with €312m in the prior year, while margin slipped from 13.5% to 11.4%.
The Italian group said it supported margin through close cost management and “careful” use of price increases, but it chose to absorb a substantial amount of higher input costs and pass only a portion on to consumers.
The sharper pricing helped volume performance, increased sales and saw the group outperform the market.
CEO Antonio Baravalle said: “The 2022 results represent another milestone for our group. Despite the particularly challenging scenario, we have been successful in sustaining turnover growth and keeping the margin in line with previous years.
“This was made possible by the huge commitment at all levels of the company to pursuing a strategy of international growth, combined with cost containment in an extremely complex situation.
“The group is now focused on the exceptional cost increases seen during the year, which will also have a significant impact on 2023.”
Turnover for the year increased in the home and out-of-home channels.
The beans segment continued to grow, with a 1.4% increase in market share across the 15 main geographical areas in which the group operates.
Morning update
S-Ventures, which invests in healthy food and drink start-ups, has suspended trading in its shares on the Aquis Exchange because of a delay to the publication of its accounts for the year ended 30 September 2022.
A short statement to the LSE this morning said: “Whilst the company is working closely with the auditors to finalise and publish the audited results for the FYE 2022 as soon as possible, the company confirms that its consolidated audited results and annual report for the FYE 2022 were unable to be published by 31 March 2023.
“Consequently, trading in the company’s shares will be suspended with effect from 7am on 3 April 2023.”
S-Ventures, which backs the likes of Pulsin, Ohso, Purely Plantain Chips and Livia’s, added the results were expected to be published by the end of April at the latest.
The FTSE 100 opened the week 0.7% higher at 7,686.26pts.
Early risers included HelloFresh, up 5% to €21.86, THG, up 2.2% to 69p, Virgin Wines UK, up 1% to 39.9p, and Imperial Brands, up 1% to 1,882p.
Just Eat Takeaway, Deliveroo and Finsbury Food Group are among the fallers, down 2.3% to 1,508p, 2% to 89.7p, 1.5% to 94.1p.
This week in the City
The markets are looking quiet this week following the start of the Easter holidays and the incoming long bank holiday weekend.
The monthly Nielsen grocery till roll figures are due out tomorrow
The Co-op is scheduled to publish annual results on Wednesday, while protein processor Hilton Food Group also files preliminaries.
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