Thursday 25 July 2024
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Caffè Borbone reports 3Q revenue of €221.1, up 7% in volume, Overseas market grow 53% year-on-year

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MILAN – Naples-based Caffè Borbone, one of the top names in the Italian market and a leading supplier of single serve coffee, reported 3Q revenue of €221.1 million, up 7% in volume and 14.7% in value compared to the same period of 2022. The Overseas market witnessed a whopping 53% increase over the previous year.

These results suggest that the company is on track to reach a full-year revenue of around €300 million, a further considerable improvement over an already robust 2022, which ended at €262.7 million.

It should be noted that Borbone has laid the foundations over the same period for a further development of its sales abroad by targeting the American market through the establishment of Caffè Borbone America Corporation, which operates directly in the United States and recorded a 35% growth in the first nine months of the year compared to the same period in 2022.

During the first nine months of the year, Italmobiliare Group – the parent company of Caffè Borbone – has turned in positive trends linked to the development and continuous improvement in the efficiency of the Portfolio Companies.

The Group’s consolidated revenue comes to 418.5 million euro, up 14.1% compared with the same period of 2022, mainly due to the positive contribution of Caffè Borbone, Casa della Salute and Officina Profumo-Farmaceutica di Santa Maria Novella, as well as the inclusion of SIDI Sport in the scope of consolidation.

The gross operating profit (66.7 million euro) is up by 50% compared with the same period last year, mainly thanks to excellent performances on the part of Caffè Borbone, Officina Profumo-Farmaceutica di Santa Maria Novella and Italgen.

Caffè Borbone

Caffè Borbone posted revenue of 221.2 million euro at September 30, 2023, an increase of 14.7% compared with the same period in 2022.

The significant growth of large-scale retail trade continues compared with the same period last year, higher than market growth rates in general (+12%, source Nielsen); the digital channel also performed well, with sales rising on Caffè Borbone’s direct e-commerce platform, Amazon and specialised portals.

Marco Schiavon, CEO of Caffè Borbone

The Overseas market is also growing, turning in +53% on the previous year; direct management of the American market has got off to a good start, with turnover growing by 35% compared with 2022.

Gross operating profit comes to 58.3 million euro with a margin of 26.4% of sales; bear in mind that this result includes 1.1 million euro of non-recurring costs.

Growth has been significant compared with the same period last year, despite the fact that the cost of coffee remained very high (especially for Robusta, which represents the bulk of the volumes purchased by the company).

The net financial position at September 30, 2023 is negative for 7.3 million euro, already net of the dividends of 30 million euro paid out in the second quarter.

Neutralising the payment of dividends and the one-off impact of the asset acquisition in America, better described in the previous quarterly report, Free Cash Flow¹ for the period was positive by 45.0 million euro, confirming yet again the Company’s cash generation capacity.

1. Free Cash Flow is the difference between the net financial position at September 30, 2023 and at the end of the previous year, gross of any dividends distributed, increases or repayments of capital, non-recurring transactions and the effects of applying IFRS 16.

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