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Massimo Zanetti sees revenues rise three per cent in first quarter

The Massimo Zanetti Beverage Group has reported consolidated revenues of €217.7 million (about US$244.8 million) for the first quarter (Q1) of 2019.

This marks an increase of €6.5 million (US$7.3 million), or 3.1 per cent, compared to the same period of 2018.

“The first quarter of 2019 closed with an increase in turnover of three per cent at current exchange rates, thanks to growth in volumes in almost all geographical areas and a steady improvement in the product mix that enabled us to achieve growth in gross profit of four per cent,” Chairman and CEO Massimo Zanetti says.

“During the quarter we completed the acquisition of Australian company The Bean Alliance, which will open up new growth opportunities in the Asia-Pacific, and the Portuguese company Cafés Nandi, which will enable us to double the production capacity of the existing plant during 2019 to meet the growing European demand.

"We also launched new projects in other markets, in response to new trends and with an ever-increasing focus on sustainability: from the bio-compostable capsules, product of the year in France, to the renewed range of products Segafredo that will soon be available in the Italian market. Based on the current results and the outlook, together with the strategies implemented, we confirm our forecasts of profitability growth for the current year.”

Read more:
• Massimo Zanetti acquires Portuguese company Cafés Nandi
• Massimo Zanetti Beverage Group acquires Australian company The Bean Alliance

Roasted coffee sales volumes increased 1.9 per cent, from 30,600 tonnes in the Q1 2018 to 31,100 tonnes Q1 2019. This increase mainly relates Northern Europe at 900 tonnes, the Americas at 200 tonnes, and the Asia-Pacific at 200 tonnes. This offset a negative performance in Southern Europe, down 700 tonnes.

Massimo Zanetti Beverage Group reported gross profit of €97 million, a 4.1 per cent boost over Q1 2018.

For the remainder of 2019, Massimo Zanetti Beverage Group forecasts a slight increase in revenues, earnings before interest, tax, depreciation and amortisation to increase three to five per cent, and net debt around €195 million (about US$219 million).

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