Juan Valdez revenues grow 19 per cent in 2016
Procafecol, the company that manages the Juan Valdez Café brand and coffee shop chain, posted revenue growth and improved profitability in 2016.
With sales of US$85.9 million in 2016, Procafecol's revenue increased 19 per cent compared to that in 2015. As a result of improved cost-of-sales management and administrative efficiencies, the company's cost of sales as a proportion of revenue decreased from 39.7 per cent in 2015 to 37.8 per cent in 2016.
Sales expenses decreased 1.4 percentage points from 33.4 per cent of revenue in 2015 to 32 per cent in 2016. Administrative expenses decreased 0.4 percentage points from 4.9 per cent in 2015 to 4.5 per cent in 2016.
The company focused its efforts on continuing expanding the Juan Valdez brand domestically and internationally in 2016. In Colombia, Procafecol opened four new cafés under its franchise model and 22 of its own cafés, reaching a total of 252 coffee shops.
Outside Colombia, the brand and chain reached 115 coffee shops, to reach a total of 367 coffee shops in 16 countries.
Procafecol's other income generation channels contributed significantly to the company's results. The institutional channel increased from 120 customers in 2015 to 149 in 2016. Revenue from the Retail Outlets channel grew 24 per cent.
At international level, there are now 6,072 points of sale in retail outlets globally, a 12 per cent expansion that led to a 24 per cent increase in revenue.
In 2017, Procafecol's goal is to preserve the trust and loyalty of its customer base through generation of new consumption spaces, supported by a solid innovation process that captures attention of new consumers around the globe.