Thursday 10 October 2024

Caffè Borbone reports 1H revenue of €154 million (+15%), announces newco for the American market

Large-Scale Retail is increasingly important, with growth of 26% compared with the previous year, more than double the average increase in the market (+11%, source Nielsen); the performance of the digital channel was also very positive, with sales on Caffè Borbone's direct e-commerce platform, Amazon and specialised portals up by 40%. The development of markets abroad continues, with an excellent start by Amazon in the new markets (Germany, UK, France and Spain)

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MILAN, Italy – The Board of Directors of Italmobiliare, the parent company of Caffè Borbone, has reviewed and approved the interim report at June 30, 2023. Italmobiliare S.p.A. is an investment holding company listed on the Milan Stock Exchange owner of a majority stake in Caffè Borbone, one of the top names on the national market and a leading supplier of single serve coffee.

During the first half of the year, despite the ongoing uncertainty and a series of critical issues, the Group turned in positive trends thanks to continuing development and various measures to optimised operations. Group turnover is up by 11.6%, coming in at 285 million euro.

The Industrial Portfolio Companies recorded growth in revenue (949.8 million, +5.1%) and EBITDA (99.8 million, +11.7%), in particular:

  • Caffè Borbone closes the half-year with a significant increase in revenue (153.7 million, +14.7%) and EBITDA (41.1 million, +21.2%);
  • the development of Officina Profumo-Farmaceutica di Santa Maria Novella continues, with revenue increasing to 23.7 million (+21.5%);
  • CDS–Casa della Salute reaches the milestone of 20 clinics, with revenue growing by 26% to 20.9 million euro;
  • Capitelli‘s revenue (11.3 million, +16.3%) and EBITDA (1.7 million, +5.5%) have increased.

The Net Asset Value of Italmobiliare S.p.A., excluding treasury shares, comes to 2,064.8 million euro (2,029.1 million euro at December 31, 2022); considering the distribution of 29.5 million euro of dividends during the first half of the year, the net performance is positive for 65.2 million euro.

The NAV per share (excluding treasury shares) is equal to 48.8 euro and, in consideration of the distribution of dividends of 0.7 euro per share, shows an increase of 3.2% compared with the same figure at December 31, 2022.

The net financial position of Italmobiliare S.p.A. is positive and has increased by 10.1 million euro, going from 151.5 million euro at December 31, 2022 to 161.6 million euro at the end of June 2023.

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In May, the signing of an agreement was announced for the sale of Florence InvestCo S.r.l., the company that holds a majority stake in Gruppo Florence S.p.A. Italmobiliare, which holds a 13.98% stake in Florence InvestCo S.r.l., expects to realise around 75 million euro for this sale.

In the first half of 2023 all the Portfolio Companies completed their adhesion to the UN Global Compact. Furthermore, Italgen and Casa della Salute have started the transformation process into B Corp.

Caffè Borbone (60% interest)

Caffè Borbone closed the first half with turnover of 153.7 million euro, +14.7% on the same period in 2022. As regards distribution channels, Large-Scale Retail is increasingly important, with growth of 26% compared with the previous year, more than double the average increase in the market (+11%, source Nielsen); the performance of the digital channel was also very positive, with sales on Caffè Borbone’s direct e-commerce platform, Amazon and specialised portals up by 40%. The development of markets abroad continues, with an excellent start by Amazon in the new markets (Germany, UK, France and Spain).

The gross operating profit (EBITDA) for the first half comes to 41.1 million euro, +21.2% on the previous year, which is even more significant if we consider that the cost of coffee is still very high.

Net of amortisation and depreciation that are substantially unchanged, the operating result comes to 35.4 million euro with a profit of 24.7 million euro (+37.7%). The net financial position is negative for 19 million euro, already net of the distribution of dividends for 30 million euro in the first half.

During the first half, Caffè Borbone laid the foundations for further development of sales abroad through the establishment of a newco, Caffè Borbone America Corp., which will operate in the US market.

For a total outlay of 2.3 million euro, of which 0.5 million euro deferred, the newco has acquired the assets it needs to start up the business from the previous company owned by third parties through which Caffè Borbone served the American market.

After neutralising the dividend payment and the one-off impact of the operation in America, cash generation in the half year was positive for 31.6 million euro, confirming the company’s historical ability to generate cash.

CIMBALI

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