The group also saw substantial growth in foreign markets, which accounted for 60.3% of turnover (up from 52.8%in 2015), thanks to the contribution from France in particular. Following the acquisition of Carte Noire, the country which represented Lavazza’s first international expansion in 1982 is now the second largest country after Italy, with 500 employees and a turnover that currently (2016) represents 20% of the Group’s total revenues.
“2016 was an extraordinary year for Lavazza. With the acquisition of Carte Noire, we launched the Group’s international development strategy aimed at strengthening our independence and competitiveness at a global level,” says Antonio Baravalle, CEO of Lavazza. “The results confirm the total success of the integration between the two companies arising from our common values, from the sharing of excellence and from a strong complementarity between the retail market and consumption outside the home. In 2017, we want to continue our efforts to commit to perfect integration so we become one of the most important players in the coffee world, retaining our reputation as a Premium Italian Producer. With a greater organic growth capacity of the market, we expect to achieve turnover of €2.2 billion in 2020.”
Operating income (EBIT) totalled €61.7 million, an increase of 34.1% compared to €46 million in the previous year. In terms of the percentage incidence on sales, the margin remains substantially in line with the previous year. Using the same EBIT parameter, 2016 saw growth of over 54% compared to the previous year.
Profits for 2016 totalled €82.2 million, which cannot be compared to the 2015 result, as the latter was boosted by capital gains of €822.8 million, realized on the sale of the shareholding in Keurig Green Mountain.
The net financial position stood at €687.5 million (€1,351 million in 2015).
Lavazza retained its leadership position in the Italian market, increasing its share to 41% despite the fact that coffee consumption decreased for the third consecutive year. In particular, the new product portfolio and a clear product segmentation strategy for the various customer types enabled the roll out of important innovations, in line with current trends in both in Italy and around the world.
With the acquisition of Carte Noire, the French manufacturing plant of Lavérune entered the industrial system of the Lavazza Group. It joins Settimo Torinese and Gattinara in Italy, as one of the main centres where Lavazza Group products are manufactured. A €16 million investment was made to restructure the whole plant, making it more modern and opening it up to future developments with hi-tech production lines.
“We are a company that loves to talk about our “heritage”, but we also have a vision for the future and a passion for excellence . This approach allowed us to incorporate Carte Noire and Merrild in record time,” says Marco Lavazza, Vice President of Lavazza. “We saw the acquisition as an enrichment, a mutual opportunity where each party complements the other, opening up new perspectives and shared pathways of innovation and technology. We invested in people and processes to achieve a rapid, efficient and satisfactory integration for all.”