Food

Biscotti Gentilini aims to expand in Italy and dreams of the stock exchange. 'Possible IPO in 3-5 years'

In an interview with Radiocor, chairman and CEO Paolo Gentilini explained that 2024 was a year of transition due to rising energy costs and the extreme volatility of raw materials. Despite this, with the spectre of US duties, the company aims to break even and achieve a gross turnover of EUR 30 million

19 April 2025

5' min read

(Il Sole 24 Ore Radiocor) - Biscotti P. Gentilini, a historic Roman company founded in 1890 and specialised in confectionery products, aims to increase its presence in Italy and does not exclude listing on Piazza Affari. "It has always been a dream that could be realised in three to five years' time," explained chairman and CEO, Paolo Gentilini, in an interview with Il Sole 24Ore Radiocor. Financially speaking, 2024 has been a year of transition due to rising energy costs and extreme volatility in raw materials. In spite of this, with the spectre of US duties, the company aims to achieve a balanced budget and gross sales of €30 million. As far as 2025 is concerned, management is aiming for a financial business plan with a five-year time horizon worth EUR 4.5 million.

What year was 2024?

2024 was a complicated year both economically and financially. Energy costs, the extreme volatility of raw materials, the still very high contractual cost of labour and money, are some of the factors that significantly affected the closing of 2024. The European price of gas, and consequently of electricity, is still much higher than pre-crisis energy levels. Gas costs 93% more than at the beginning of last year, which becomes 260% when compared to the pre-war period. Economic conditions have also been extremely adverse for the raw materials that are the basis for the production of our products. With the exception of sugar, all other cost components have undergone major increases, butter has gone from EUR 5.60 per kilo to EUR 9; not to mention cocoa whose increase has been 150% in the last year alone. In this context, the +4% increase in personnel costs and the cost of money, which has been close to 4 points for a large part of the year with a spread at 6%, have contributed to making 2024 even more difficult. All these burdensome exogenous factors were to a large extent coped with by the company, either because they were unforeseeable and occurred during the year, or because we felt that consumers would not be able to sustain the necessary inflation in sales prices.

To this is added the duties imposed by the US administration. Are you worried?

For 3-4 years we have already been moving towards Italian products. For now we are not affected by these duties but we have to see what will happen in the future. Our greatest wish is for an end to the war in Ukraine, which has had a major impact on energy costs; this has led us to adjust our list prices.

In light of this complex picture, with what numbers will you close 2024?

Despite the fact that the balance sheet has not yet been closed, we estimate a gross turnover of EUR 30 million, a substantial break-even compared to the previous year, a break-even that we should also achieve from an economic point of view. In fact, in addition to all of the above, there are the investments made over the past four years, amounting to EUR 6.5 million, of which only EUR 2.2 million in the previous year. In 2024, the total renewal of the rusk line was completed, a line that currently accounts for 30% for our company and is a segment on which we are focusing to strengthen our presence in the market and respond to the new needs of consumers.2024 was a year of transition that will allow us to better face future challenges and that will allow us to bring our craftsmanship, an essential value for us, to the entire peninsula.

What view do you have on 2025?

For the current year, we expect the investments made in 2024 to start producing tangible effects, strengthening our market presence, with a focus on the rusk segment and optimising production efficiency. The transformation into a joint-stock company and a Benefit Corporation is a strategic step towards more structured and sustainable growth, allowing us to access new capital, strengthen governance and ensure greater transparency. This change is part of a long-term vision that combines economic soundness and social responsibility. As a Spa, the development plan calls for theactivation of bonds convertible, which, thanks to Invitalia's intervention, will financially strengthen the company, while the first step as a benefit company was to support the Rosa and Giovanni Melchiorri Ets Foundation in the 'Alzheimer Prevention Network' project.

Do you have an expansion plan under consideration? If yes, with what territorial focus?

We have a distribution in Italy that is still not very widespread so we want to expand. We are investing in people and we are confident that there can be more development of the brand. Our focus is on northern Italy but we also see opportunities in the south. We recently opened a store in Milan and this is a boost to make our products known to consumers. In addition, we have drawn up an economic-financial plan with a five-year time horizon of EUR 4.5 million, which includes, among other things, EUR 2.2 million in investments in machinery; a financial operation through bonds of EUR 3.7 million; and the accounting for the Industry 5.0 tax credit of EUR 880 thousand. The modernisation investment plan together with the achievement of new market segments and more outlets in the sales channels will lead to a CAGR in the five years of 11%. The increase in sales will come from the strengthening and broadening of the assortment in the areas of strength and from the presidium of the areas where the company is still less present, starting from Northern Italy.

Have you ever thought about a listing project?

The listing is a dream. We have thought about it and I would like to but now is not the time. We could talk about it, I hope, in 3-5 years. Gentilini is a family business but it must be ready to compete in the long term. Should we decide to go public, we would definitely choose the Milan stock exchange.

What are the actions put in place in terms of sustainability?

We will continue our commitment through concrete initiatives. The implementation of the new photovoltaic system has reduced the environmental impact and today60% of the energy consumed comes from renewable sources, with the goal in the near future of achieving energy self-sufficiency. Responsible supply chain management will see further selection of certified suppliers, with a focus on ethical and low environmental impact practices.

In the past year, we have also chosen to use flours exclusively from a 100% controlled supply chain of Italian origin, sustainable and environmentally friendly, obtained through careful and responsible agronomic practices. In addition, we will continue to invest in the reduction of CO2 emissions, the responsible use of raw materials and the innovation of production processes, with the aim of minimising waste and improving the sustainability of the entire supply chain. The transition towards more sustainable packaging will be another key point in our ESG strategy, with the introduction of increasingly environmentally friendly and recyclable solutions. In a still complex economic environment, we want to grow sustainably, improving our performance without ever losing sight of quality, innovation and environmental awareness.